₦airaland Forum

OBAGADAFFI:
Interesting!

emmanuelewumi:
Na cross deals now.

locodemy:
Free float don increase be that.
Not too good for shareholders as more offers will be available now than before.

stcool:
“Following the transfer, the bank will complete all relevant processes to effect the cancellation of these shares.

“Upon cancellation of the 2,080,104,955 units of ordinary shares, the outstanding shares of UBA Plc will be reduced by the amount accordingly,” the statement released today said.

Very interesting...Uncle TOE!

emmanuelewumi:
I guess UBA bought the shares from the staff shares purchase scheme.

The shares bought will be cancelled thereby reducing the outstanding shares of UBA.

The transaction is more of a share back scheme, don't be surprised if you see UBA at around N12 by December 2017.

locodemy:
Good if we look into it in that perspective.

locodemy:
If it is a good news,it must surely reflect in tomorrow's trade.I doubt it.

stcool:
“Following the transfer, the bank will complete all relevant processes to effect the cancellation of these shares.

“Upon cancellation of the 2,080,104,955 units of ordinary shares, the outstanding shares of UBA Plc will be reduced by the amount accordingly,” the statement released today said.

Very interesting...Uncle TOE!

emmanuelewumi:
I think that is a nice one from Tony.

Management who have confidence in the future of their companies should not be bothered by the cheap valuation by the market.

If the market value my company at N9 and I know that the company is worth N15, the best thing is to buy back the shares.

stcool:
For me very positive, would watch how market reacts tomorrow and find my way into the stock ahead of year end.

emmanuelewumi:
I think that is a nice one from Tony.

Management who have confidence in the future of their companies should not be bothered by the cheap valuation by the market.

If the market value my company at N9 and I know that the company is worth N15, the best thing is to buy back the shares.

emmanuelewumi:
Why waiting for market reaction? Market reaction might not be positive immediately.

When Fbnh had her agm the market did react immediately, but those who bought immediately after the AGM should have made 70%.

pluto09:
But one would want to ask, why didnt the management buy the share back when uba was selling for N4 or N5

pluto09:
But one would want to ask, why didnt the management buy the share back when uba was selling for N4 or N5

robobo:
wicked question

but i think it is because share buy back is not authorized in Nigeria (just like short selling is not ) , i might be wrong though

could also be because this is being bought back from a staff scheme which has a shelf life which just matured (hence not available when it was N3 /N4 / N5 e.t.c)

my layman thinking though, wld appr8 the experts opinion on same

emmanuelewumi:
I guess management, insiders and some investors like me bought at those prices and even at lower prices. But those purchases were done in the personal capacities of management, insiders and informed investors.

The share buy back was approved by shareholders during the last AGM, and the buy back was done by the company. I share buy back also needs the approval of SEC.

If you are a value investor you will agree with me that UBA is not a N10 stock.

Tritri:
@DeRuggedProf break it down for us..


Please what happening on dang-flour...it's been stagnant ...any idea? thinking of exit ..

DeRuggedProf:
HOLD.

Offers were blocked deliberately in an oil coy...

emmanuelewumi:
I guess management, insiders and some investors like me bought at those prices and even at lower prices. But those purchases were done in the personal capacities of management, insiders and informed investors.

The share buy back was approved by shareholders during the last AGM, and the buy back was done by the company. I share buy back also needs the approval of SEC.

If you are a value investor you will agree with me that UBA is not a N10 stock.

pluto09:
I also read it that the share buy back was approved by shareholders since last year.That is the reason i am asking the question.
I am very much in support of share buy back but i equally understand that shareholders get a better deal if it is done at a very low price hence my question of why now?
Yes i agree uba is not a N10 stock but i will rather buy the stock when it was N4 than wait for it to get to N10.

emmanuelewumi:
The buy back was bought from the staff Investment Trust Scheme. The staff investment Trust Scheme members are insiders who will not be willing to sell at N4 to N6.

If UBA had bought the over 2 billion units on the floor from you and I, your guess is as good as mine UBA would have been selling higher than the current price.

Let us wait for the q2 performance of UBA. But with the 36.3 billion outstanding shares, the company was able to make EPS of N2 for the full year of 2016.

DeRuggedProf:
At times, I feel bad that the market is never ALLOWED to be free in many little ways in a MANIPULATIVE WAY.
Someone wants to OFFLOAD about 17M units of a stock THAT became 'accessible' on bad news and you DELIBERATELY held him back saying you are having technical issues placing orders when IT IS NOT TRUE.
That volume would have satisfied much orders.
God is watching.

robobo:
Oga Prof but why u dey vex for this txn naaaa

Oga Intendy warn of a technical suspension on d Stock some days ago naaaa

maybe that is the "technical suspension"

pluto09:
I also read it that the share buy back was approved by shareholders since last year.That is the reason i am asking the question.
I am very much in support of share buy back but i equally understand that shareholders get a better deal if it is done at a very low price hence my question of why now?
Yes i agree uba is not a N10 stock but i will rather buy the stock when it was N4 than wait for it to get to N10.

DeRuggedProf:
A Crude cabal, cacophonically conducting obnoxious deals since the days of John the Baptist, after the elimination of EXCEPTIONAL ITEMS...

pluto09:
I dont have problem with uba result, they are doing well and if you ask me i will pick uba ahead of other tier1 bank if i am to buy bank stock today.
I asked the question so as to generate healthy debate and probably learn one or two things.

DeRuggedProf:
A Crude cabal, cacophonically conducting obnoxious deals since the days of John the Baptist, after the elimination of EXCEPTIONAL ITEMS...