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Online Share Trading

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Share buyback

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Herms
Contributor
Hi everyone. How does a share buyback work? Let's say I have a 1000 shares in company A and the cash rate per share is R1. Do I lose some shares(does the company buy it back directly from every shareholder) or do I only recieve the R1 P/s and still keep my 1000 shares? Please any help would be appreciated. (sorry if it's a stupid q but I'm still a newbie)
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5 REPLIES 5
SimonPB
Valued Contributor
a small buy back will be done in the open market withtr eh company just buying .. larger will be a forced sale by existing share holders of a certain amount of current holding ..
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bangbul
Regular Contributor
normally bought on open market. do this in stead of div to reduce dilution of future profit.
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Herms
Contributor
Simon so in the upcoming buyback by Bidvest(BVT), how do I confirm which one of those two options it will be?
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Picky
Regular Contributor
Bidvest intends to make an interim cash distribution by way of a pro rata share buy back. The implementation will be effected by way of a scheme of arrangement for the repurchase of 1,82% of every members' shareholding in Bidvest at a price of R121,00 per share being a premium of 15,3% over the last 30 days weighted average share price of Bidvest. The payment will equate to an effective distribution of 220,0 cents per share (2006: 198,0 cents).
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Herms
Contributor
Picky, so excactly how much will I recieve per share?
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