I have recently received a letter from Microequities Asset Management which I assume was sent to all shareholders outlining their view regarding the proposed off market buyback. They argue that it is simply unfair to all shareholders to vote on the buyback of shares when it is still unclear if the company will be privatised or listed elsewhere. This uncertainty has already contributed to a low share price making the buyback attractive from the Company's point of view. In addition to this, Ned Montarello could increase his stake substantially given he has stated that he will not participate in the buyback.
I would agree that it is simply unfair to ask shareholders to make such a decision without further information on what the board intends to do post the share buyback. How long do they need to make their decision? Is it unreasonable to ask for a decision on the future plans of the company before a buyback is proposed?
This buyback surely can't be in the minority shareholder's interest, especially given the depressed price! This proposal needs to be rejected by all shareholders! Make sure you vote!
TSM Price at posting:
32.5¢ Sentiment: Hold Disclosure: Held
