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 Top Glove Share Buybacks, Keep Tab!

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kart
post Feb 12 2021, 05:40 PM

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Correct me if I am mistaken, the current practice of share buyback benefits only the shareholders who sell the shares.

Has any company implemented a different form of share buyback, whereby all shareholders will receive the proceed from the share buyback?

Assume that total numbers of shares issued by a company is 10000 units, which are owned by three shareholders.

Shareholder A: Own 200 units.

Shareholder B: Own 7000 units.

Shareholder C: Own 2800 units.


The company intends to buy back 10% of total number of shares, which are 1000 units.

After the share buyback:

Shareholder A: Own 180 units. The company will credit the proceed of the sale of 20 units in the form of cash, to the trading account of Shareholder A.

Shareholder B: Own 6300 units. The company will credit the proceed of the sale of 700 units in the form of cash, to the trading account of Shareholder B.

Shareholder C: Own 2520 units. The company will credit the proceed of the sale of 280 units in the form of cash, to the trading account of Shareholder C.


Has such way of share buyback been implemented before?


Thank you for the clarification. smile.gif

This post has been edited by kart: Feb 12 2021, 05:40 PM

 

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