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Great article by Paul Rickard on Telstra off market buyback. Given there will be only some 180 million shares purchased would it be fair to say virtually every shareholder will be lucky to sell 1,000 shares and therefore, although it is a no brainer for those in pension phase, the amount of money involved is small ?
A: Yes - I think the off-market buyback will be heavily oversubscribed. The circa 200 million shares only represents about 1.7% of Telstra’s capital.
Telstra has, however, effectively guaranteed a minimum acceptance of 925 shares (assuming final price or appropriate discount margin tendered).
The chances are that you will get accepted for more than this, and that there will be a scale back – so the strategy is to tender all your shares to maximise your acceptance amount.
As you say, however, this may only be a few thousand shares and while it is a “no brainer for some”, the amount of money involved maybe relatively small.
