Quite canny.
A "debut" bond issue at 1.625%
https://www.investegate.co.uk/sage-grou ... 52366404P/
2 weeks later, announce a share buyback scheme at a point in time that the shares are yielding 3%
https://www.investegate.co.uk/sage-grou ... 11481585R/
Market seemed reasonably pleased with the buyback announcement.
Matt
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Sage announce a debut bond and a share buyback scheme
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- Lemon Quarter
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- Lemon Half
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Re: Sage announce a debut bond and a share buyback scheme
£300m / £6per share = 50 million shares.
(or 50M/1100M =4.5% of total Ordinary shares).
50m x £0.17 divi = £8.5m of dividend payout savings.
(Maybe some of the cash will go towards paying their pension deficit)?
(or 50M/1100M =4.5% of total Ordinary shares).
50m x £0.17 divi = £8.5m of dividend payout savings.
(Maybe some of the cash will go towards paying their pension deficit)?
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- Lemon Quarter
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Re: Sage announce a debut bond and a share buyback scheme
Thanks for doing the maths. TBF I've not researched their pension deficit in depth, as their "normal" debt ratios (leverage, debt/equity etc.) look fairly healthy.
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- Lemon Quarter
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Re: Sage announce a debut bond and a share buyback scheme
TheMotorcycleBoy wrote:Thanks for doing the maths. TBF I've not researched their pension deficit in depth, as their "normal" debt ratios (leverage, debt/equity etc.) look fairly healthy.
You're right. The pension deficit is the least of Sage's problems currently. If you include the pension deficit, net gearing is 11%. For such a cash generative company it is not worthy of concern.
All the best, Si
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