i note that the NTA after buy back will be around above $2.80 - $3 mark. now the options for Hcl are to; 1. issue more shares, at discount and invest in something 2. make an offer to existing holders to buy them out 3. de list the company due to liquidity issues.
my feeling is that they will probably issue more shares and then try to get rid of all the small holders. they can increase their holding by 3% every 6 months but would take years to get to the 90% compulsory acquisition level, so i figure they would make an offer at some point and then take the company private. with an NTA around $3 it could be even better than the current buy back ~ $2.45
comments?
OCP Price at posting:
$2.36 Sentiment: None Disclosure: Held
