LMA International

[Nick]

LMA plans to repurchase up to 10% of its shares at 36 cents per shares.

http://info.sgx.com/webcoranncatth.nsf/V...5000032FB/$file/LMA_Share_Buyback_Offer_24Nov10.pdf?openelement

Quite an interesting way to reward shareholders and using its excess cash.

[Musicwhiz]

A 28.6% premium to market price? Why is the Company paying such a high premium to buy back its shares? The way I see it, if the Company was serious in "rewarding shareholders", why not just do a direct share buy-back from the market at market price, instead of paying a premium to buy back shares from shareholders? Seems like a waste of cash to pay for the premium, even though technically this means that you can attract more shares to be sold to you.

[Nick]

I believe Peter Lynch once mentioned about companies which paid for shares at a premium of its last traded price and praised it for its demonstration of its belief in itself. The company in question was called Teledyne and the Chairman consistently offered to buy back its own shares at huge premiums. To quote Lynch in pg 136 of One Up on Wall Street - 'This practical demonstration of Teledyne's belief in itself is more convincing than the adjectives in the annual report.'

I guess what differentiates this from most share buy-backs is the company desire to get 10% of the company shares back. You can do it very slowly by buying a few thousand shares a day or offer a nice premium and get it done in a matter of weeks. Hence a pretty good question is why does the Director deem it worthwhile to invest in itself at $0.36...could there be something exciting coming up ? Or is this the start of privatization ?

(Not Vested)

[cif5000]

There are some very interesting events prior to this "victory" for the minority shareholders - led by institutions. The none-passing of the IPT mandate set the stage to today's announcement, in my opinion. Changes to the board and management too. Note that the announcement also indicated an interim dividend for this financial year, which again is a landmark event.

[valueinvestor]

Buy from open market now at 0.32 and sell to the company at 0.36 , not a bad deal ?

[Nick]

I also thinking how come the market is letting this take place ?

[valueinvestor]

They will only buy back 10%, so retail shareholders are unlikely to have a slice of this action.

[d.o.g.]

They will only buy back 10%, so retail shareholders are unlikely to have a slice of this action.

It is an "Equal Access Offer" so all shareholders can participate. But a maximum of 10% of each shareholder's shares will be bought back, so if you buy 10,000 shares you can only sell 1,000 at the offer price. The rest will be up to you to dispose of.

[valueinvestor]

They will only buy back 10%, so retail shareholders are unlikely to have a slice of this action.

It is an "Equal Access Offer" so all shareholders can participate. But a maximum of 10% of each shareholder's shares will be bought back, so if you buy 10,000 shares you can only sell 1,000 at the offer price. The rest will be up to you to dispose of.

Thanks d.o.g. for clarification.

[d.o.g.]

The none-passing of the IPT mandate set the stage to today's announcement, in my opinion.

According to the company's announcement on 29 Apr 2010, ALL the resolutions set out in the notice of the Annual Meeting were approved.

The notice of the Annual Meeting, dated 14 Apr 2010, lists interested party transactions within Resolutions 8 and 9.

So it would seem that the IPT mandates were indeed passed.

Or do you have information to the contrary?