No, the pie - ie the company's assets - remains the same size, unless the new capital is used to grow it. Just that non-participants are left with a smaller slice.
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Not many sellers right now. Just 1875 shares for sale at $2.40, then 2100 at $2.50 and then a big step to $2.79 where 50,000 are offered.
I'm not sure if this is very significant.
But I think the JV will have trouble getting their 90% of TLT now. Not at $2.30, anyway.
https://www.bloomberg.com/news/artic...-next-election
good news for tilt if it happens , no wonder ift badly want this as ive always maintained
Not good news for tilt. The batteries will encourage households to be independent and lead to prices dropping. The last thing Tlt want.
And so it ends, hopefully shares plummit so I can buy in yet again...
cash issue has arrived cheap shares for holders
Nice bonus for the loyal, the jv didn’t tempt me... much ha
not much comment on this , but its hitting new highs today. always said ift were trying to get a steal lol
Hit $3, happy days for those that didn’t sell out to ift (and for ift).
Big & only going to get bigger IMO,compounding returns
https://finance.yahoo.com/news/wind-...103021543.html
quietly making new highs today
Tilt Renewables is pleased to have been delivered the judgment of the Supreme Court upholding the decision of the Environment, Resources and Development Court (ERD) to approve the Palmer Wind Farm project.
https://www.nzx.com/announcements/344447
Etiquette & honesty of board one of first things to check if looking to invest in anything :mellow:
new highs today 100% gains now from listing date :) poor ift must be really annoyed they didnt sucker us all in to selling
https://www.nzx.com/announcements/345462
got to be good for Infratil too, sitting on roughly 65% holding, solid gain the last 6months on that position!
https://www.nzx.com/announcements/347133
In case any missed it.
15/1/2020, 5:19 pm MKTUPDTE. Seems interesting timing. Misses most of the daily scrutiny on the 15th. And then not on the radar on the 16th. Don’t really see why, nothing particularly significant, one way or another, as far as I could see.
Thank you for this alert - yes I totally missed that.
I also am confused about the sales data - yesterday and today I have sold over 700 shares, all in tiny little parcels of 1 or more (so a million email sale notifications lol), and all have been at $3.39 but this price hasn't registered on the charts?
Agree. Having been responsible for these releases in the past, sometimes its just that the final sign-offs from the relevant stakeholders tend to come together at around close of business. Then if its not price sensitive, then just getting it live for everyone immediately makes sense.
https://www.nzx.com/announcements/351416
Very bullish announcement from Tilt, bit of rarity under current economic environment.
Yup..TLT is on my pick. Heaps of cash...! Cash is the king!
" Tilt Renewables Limited (TLT) intends to return approximately A$260m (approximately A$0.55 per share) to shareholders via a pro-rata share buy-back."
https://www.nzx.com/announcements/351416
Sounds like good news....up 10c today. 2018 Takeover offer @ $2.30. While I was never going to sell into it, thanks again for the directors who recommended against it. The cash will be useful at the moment.
Pretty sure TLT will be on good position with heaps of cash around. Yet utilities sector is pretty defensive during this crisis time
This caught me by surprise. Bullish indeed and TLT has already fared fairly well through the late March drop. Tax effective way of returning capital to shareholders so hard to fault it.
Bit of disparity between two bourses NZX at NZ$ 301 and ASX at A$ 298...
Why do Infratil want the money?
Looking good this babe.....heaps of unrestricted cash....many companies would like in to TLT position..
What a great announcement again! Contract with Aldi
Insider buying more...!
Smart fellow..... bought in more before the buy back kick in
A bit disappointed eh...cancel 1 share per 5 shares...then paid $2.91 for the share cancelled...the current SP is $3.17.....
It is not better off for the shareholders.....
Nah...it doesn't make sense.....don't u think master winner?
SP now $3.19.....announcenent to cancel 1share every 5 shares hold n paid $2.91 for it.....
That means... shareholders lose almost $.30?
So...if u own 1000 shares at $3.10....iy costed you $3100.
1000 shares... cancelled 200 shares.
They pay 200 shares....@2.91...$582
Current holding will be 800 shares @3.10 that will be $2480
Total $2480 plus $582 = $3062....u paid $3100 for it....
So current SP is not a buy.....
That is my view of it. The relative value of the remaining shares go up. Whether the market recognizes that is a different matter.
How ...master winner....I still try to make sense of it...
If TLT simply cancelled 1 share in 5 and paid you nothing, would you be worse off?
Buying back 1 in 5 shares at $2.91 has the same outcome as paying a $0.582 per share tax-free dividend, followed by a 4 for 5 share consolidation. So if the share price just before the buyback was $3.10, then ex-dividend it should reduce to $2.518, but then the consolidation should increase it to $3.1475. Is this right?
One disadvantage is those of us who want to maintain our investment in TLT at athe same level will have to reinvest the proceeds of the buyback, incuring brokerage costs. Another is that TLT will have to pay brokers and underwriters when it asks for the cash back to fund more projects in the future.
Nahh.....say u paid $3 per share. Then the buy back $2.91...then u are losing 9c....your 5 shares then reduced to 4 shares at $3....
You still own part of the company - this is all zero sum stuff. You think you're losing 9c, but you're also the person gaining the 9c through your ownership of the company.
Taken to the extreme, if they paid zero for the shares you still lose nothing, your existing shares just become worth more. Same as a share consolidation/split.
If they bought back 1 share in 5 at $0 per share, do you think you would lose $3.10 for every 5 shares? No, that would just be a straight share consolidation, companies do that all the time, it has no effect on the value of your investment because the 4 shares you are left with represent the same proportion of the company that the original 5 did. They could set the buyback price at $1.00 per share or $5.00 per share and you wouldn't lose or gain anything from it, other than perhaps the costs associated with reinvesting the proceeds.
No way....
Okay.....this is my understanding....
If someone bought 1000 shares at @$3 then it costed $3000.
Now ....1 share every 5 shares you own will be bought back....
So 1000 shares ..200 shares will be bought back at $2.91...u get paid $582
Remaining you only own 800 shares left....@$3....so...$2400 worth of shares left
I dont think after the bought back...I still own 1000 shares.... otherwise the market will be shoot up to $4 per share now
So total investment $2400 plus $582..paid from bought back ..total investment will be $2982....
So... basically u lose $18.....yes...the shares will be less on the register....but the higher SP u paid....the more u loss...on the bought back....
Then your original paid $3000 for 1000shares...becom 800 shares...that means 1 share worth $3.75 after the bought back. But the market is trading at $3.19
Happy to be corrected ....that my understanding
If one bought below $2.90...then it is a good bought back....but the higher SP I paid ..the more u are going to lose in the short term...long term ...SP should be consolidate...but at the uncertain market condition.... nobody knows
We need Master Beagle to explain his thoughts..
"They" are not taking your shares off of you - you own part of the company and are buying the shares off yourself. Any benefit you see to the company is actually a benefit to yourself, and the share price should adjust upwards to account for it.
It doesn't matter whether the 'you' the owns the company or the 'you' that is being paid out 'wins' - it's all just financial shenanigans to allow the company to hand out some cash without attracting tax.
Yes I got it.....but when u break it down mathematically.....then at the current SP...$3.19 is going to loss a lot...after bought back ...if u don't take the bought back cash to the account....then 1 share ..end up $4 on your holding.
Depanding on the market...it will take a while tfor the SP to trade around $4
Think about how it would work if you owned 100% of the company. It's like transferring your cash from one account to another.
The maths is no different if you only own 0.001% of the company.
Oops a brain teaser going on here! :mellow:...............Think I will move on to the next stock.
does anyone know the date of record for this? Seems like a large free dividend to me?
Yeah, I was surprised when I saw the share price going down following the announcement. The remaining shares are slightly more valuable not less. Still, the current price is sentiment based so if the people think they are losing then the current price will drop.
All good winner, just trying to figure that out myself and two bits of info I got from y'days announcement was this...
- TLT initially announced the capital return on 8 April 2020. An application for initial orders from the High Court to consider the scheme of arrangement was filed on 28 April 2020.
- receiving a cash sum of NZ$2.91 for each share cancelled. Shareholders at 7:00pm (NZT) on the record date for the scheme with an address on the register in Australia will be paid NZ$2.91 converted into Australian dollars at the exchange rate offered by TLT's bankers to TLT at that time, as determined by TLT.
Not sure its clear as mud from above what's record date and couldn't find any investor contact email on Tilt website to fire off a question. There's one email for general info queries.
Mark Flesher, Investor Relations, Infratil Limited
mark.flesher@infratil.com
There is no record date yet because the scheme schedule has not been finalised.
Thats how I understand it.
Indicative Record date is 3rd July.
Share registry data suggests that IFT increased its shareholding in TLT by 1.9m shares during the market meltdown in March. Assume under the takeovers code creep provisions they can increase their shareholding by up to 5% in any 12 month period. March purchases increased IFT shareholding from 65.24% to 65.64%. Will MCY and IFT have another attempt to privatise TLT once the capital return has been paid out?
TLT annual result to be released tomorrow, Monday 25 May. Will be interested to get some concrete financial data on the impact of the sale of Snowtown 2. TLT have been economical with disclosure on impacts (other than high level surplus cash details in respect of capital return) to date. Further, I assume significant development gains will arise in completion of Dundonnell and Waipipi projects. The Morrison & Co management contract with IFT will encourage TLT to unlock this value uplift given the ongoing return through operating the wind farms will likely be below the bonus management fee hurdle rate.
For those planning to reinvest the proceeds from the buyback back into TLT shares, any thoughts on the best time to do it? Before or after the buyback, or half each way to play it safe?
Given the buy back price is $2.91 compared with a current trading range of $3.10 to $3.20, the theoretical ex price for the same price range is $3.1475 to $3.2725.
Given the free float is relatively small, my sense it that buying before the cash is paid out it preferable because demand will presumably increase as holders who want to reinvest do so. One downside is paying brokerage on a bit less than one fifth of the purchase price that will reappear in your bank account shortly thereafter.
One of there turbines and trucks has rolled en route near okato
OK...they have exercised the share cancellation (1:5) and cash return (2.91 / share ). Although we don't have the cash in our account as yet. This always does my head in whether I'm ahead or behind after the event.
By my calculations...assuming the Share Price was 3.55 before the deal...then we need to get to 3.71 post to be even. I guess this ignores any tax advantage of returning capital to us in this way ?
Is this why there is a differential today....market price $3.50 cf theoretical excluding tax of 3.71.
Or have I simply lost a few dollars ?
The final closing price pre-buyback was $3.42, which equates to $3.5475 post-buyback.
Should be a wash either way - you're just transferring money from one pocket to another. Not worth getting too bogged down in it. Either the you getting paid out wins, or the you that owns the company paying out wins, but they balance each other out.
https://www.nzx.com/announcements/356046
Bit of a warning re the Infratil result.
Ooops...that’s me now.
https://www.nzx.com/announcements/356026
...and this may be of interest as well.
https://www.abc.net.au/news/2020-06-...ckout/12372558
Nothing is simple, is it.
This might be why TLT are having issues.
Hi,out there o wiser ones, what issues are TLT having? Im just a novice out there, and I just cant understand why the the forum oracles dont seem to comment much on this stock, dumb buggers like me really appreciate your wise council, Ive done really well out of this stock but should I hold or should I go?
It is all about the stability of, in this case, the South Australia Electricity Grid and the very different problems that a high amount of assorted renewables with a very (short-term) dynamic output cause to a system designed around consistent & dependable supply providers and which only now, are those involved just beginning to get an understanding of the true consequences of such.
[Disc: Worked for just about everybody in this space]
Yes.
https://www.youtube.com/watch?v=BN1WwnEDWAM
inspired by snow leopard, and the randomness of renewables, and the randomness of the word blow
let it blow let it blow...
one for the kids
https://www.youtube.com/watch?v=Xlwzr_9BuaY
one for gangsters
https://www.youtube.com/watch?v=HsSpYCSJ3vc
And one for minecrafters
https://www.youtube.com/watch?v=mJB3itCQatI
Keep an eye on IFN (asx) atm. Currently under going a takeover. This could provide assistance with valuation.