MGF have made the offer to buy back 500m worth of options (expiring march 2024) at a price of $0.10c. It’s the highest they have traded at….ever.
But it’s a discount to their value so large and depressing I actually don’t want to calculate it. The options give the holder the ability to convert it into a share of MGF at a 7.5% discount to NAV. Problem being is that the shares trade at roughly this anyway.
Magellan have stated they are doing this to cover their balance sheet exposure to this, as they fund the discount.
@Bear77 I'm particularly interested in your thoughts.
I feel like they are trying to reduce the risk of them having to fund that at the current share price, or even worse for them whilst better for us. The actual NAV.
I guess the real question is what do we think the chances of a better payoff later are? I think it’s a 50/50 gamble at best.