r36, there are 2 ways to do a buy-back. You can either do it on-market or off-market.
Given EXS wanted to distribute 135m of cash, it means they can only buy 198m shares for 68c. The easiest way to do this is to go on-market and buy them over time to those wanting to sell, however you cannot distribute franking credits by doing this so it is inefficient.
To distribute franking credits, you need an off-market buy-back. I am not sure the outcome is that much different from the current proposal. You are not getting a 30% higher return because the company won't be buying back all your shares - you will end up with the same amount of cash (ie your share of the 135m).
EXS Price at posting:
62.0¢ Sentiment: Buy Disclosure: Held
