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Cathay to buy back 10% of company stock
Could anyone confirm or deny this rumour circulating the banking community at the moment, that CX is preparing to buy back 10% of stock - dare I say it - with cash generated from SLS???? :eek::eek::eek:
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Impossible !!!!
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Sharebuyback rumor
Did this rumor start on pprune?
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Here it is,
HONG KONG - In April 2009, the board of Cathay Pacific Airways Ltd (Cathay), a provider of air transportation services, authorized the repurchase of up to 393.363 mil ordinary shares, or about 10% of the Company's entire share capital, in an open market transaction. Based on Cathay's closing stock price of HKD 8.15 (USD 1.052) on 02 April 2009, the last full trading day prior to the announcement of the board?s approval, the buyback had an indicated value of up to HKD 3.206 bil (USD 413.726 mil) in cash. |
What exactly does that mean? They don't have enough money so ask staff to take unpaid leave BUT they have enough money to buy back shares at a low price...?:sad:
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That makes my SLS decision quite easy. COS 08 wasn't even a decision.
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put quite simply it means that cathay is buying their own shares at a Bargain basement price as they know they will go back to 13-19 HK$$$ in the next year.....................
they ain't exactly as dumb as some of you lot would like to believe................... |
Concur Size, however it doesn't do much for the 'goodwill' element of taking up SLS.
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If this turns out to be true, and by the looks of it, seems to be factual. Then it really sheds a whole new light on the present 'FINANCIAL' situation.
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Gentlemen,
I seldom am outraged by this company anymore, as I have been witness to so many such events. This news however deserves far more publicity. It is unconscionable that at the same time they are asking their staff for cuts in basic pay, they are using hundreds of millions to repurchase shares. A friend of mine is the Managing Director of another large HK company, and he told me that this has left him speechless. Regardless of all the issues inherent in the latest proposal from the company, the timing of this repurchase plan can only be considered a deliberate humiliation. To give the company any type of victory in this debacle will only lead to yet more erosion of your careers. As someone who has been here a long time, I can assure you that the only hope you have to protect the value of your career is to stand up to this appalling attack. Vote NO. OCD |
OCD,
of course being an Old China 'hand' you will have seen that HK companies shaft any thing/body with a pulse to make a profit - PCCW anybody(?). So why get upset - either move to a company that 'loves' it's employees, in another part of the world. Or sit tight and wait until CX plays nice again and you can count you wages/housing/apartments etc in the good times and have another beer..... Regards, N1 Vibes |
Rumour that's all it is.......
or is it ? |
please tell me this is a joke!
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This is no joke or just a bad rumour... It's happening!!!
Check the link on mr did's post above. Direct from CX themselves. |
Like Mr Did said check out the link that was posted, or you can follow the link below and download the pdf file under '2009 AGM'. It's no joke :yuk:
Cathay Pacific - This is when the CEO stood up in his briefing and stated that cx didnt have enough cash to pay its monthly bills, comparing it to us not being able to pay our monthly mortgages.... :yuk: |
The relevant sections
The following is the Explanatory Statement required to be sent to shareholders under the Listing Rules in connection with the proposed general mandate for repurchase of shares and also constitutes the Memorandum required under section 49BA of the Companies Ordinance. 1. It is proposed that up to 10 per cent of the Company’s shares in issue at the date of the passing of the resolution to approve the general mandate may be repurchased. As at 12th March 2009, the latest practicable date for determining such figure, the number of shares in issue was 3,933,628,572. On the basis of this figure (and assuming no shares are issued or repurchased after 12th March 2009 and up to the date of passing such resolution) the Directors would be authorised to repurchase up to 393,362,857 shares. 2. The Directors believe that the ability to repurchase shares is in the interests of the Company and its shareholders. Repurchases may, depending on the circumstances, result in an increase in net assets and/or earnings per share. The Directors are seeking the grant of a general mandate to repurchase shares to give the Company the flexibility to do so if and when appropriate. The number of shares to be repurchased on any occasion and the price and other terms upon which the same are repurchased will be decided by the Directors at the relevant time having regard to the circumstances then pertaining. 3. It is envisaged that the funds required for any repurchase would be derived from the distributable profits of the Company. |
What a fu:mad:ng joke!
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I think that there is a lot of good will out there towards the company. But if this is for real... namely we are giving up our salaries and at the same time the company comes up with $3bn in CASH to buy back shares.......... Is that what this rush has all been about?
I suppose that the buy-back of shares is a good idea financially as they are low, but timed with SLS make this a direct pay from us. I expect we will see it all back in profit share.... or directors bonuses?:= |
N1 Vibes. ...'why get upset'...? Well, why don't you tell me? I suppose your preferred alternative is to spend your life just 'accepting' whatever happens, no matter how egregious. You go ahead and 'accept' whatever happens. The rest of us will put up the best fight we can, regardless of outcome. Enjoy your role as a spectator...:yuk: (what's cantonese for 'spineless'...?)
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