Buying into what we already own....One man's perspective, from Investor Village:
"The reason they are doing this is so that majority of retail shareholders will not want to pony up the extra money for the PNG business.... It's as simple as that. They don't need the money as they already have too much. But they came up with a scheme to end up owning as much of the PNG business for themselves. They didn't have to do any of this at all. They could have just bought back some shares and pushed up the shares to $4 and then paid out massive dividends.
I guess if you play along with them (many won't) you will come out ahead. But it is private. And they will have tons of cash they won't even know what to do with. Massive dividends? Then sell the company? I have no idea, but they will probably look for an exit somehow in the next 2 to 3 years. But you also always have the risk of them milking some of those $$ for themselves via excessively high salaries/bonuses. If they are private, what say do you have?
The PNG business is probably worth multiples the current stock price right now in 2 years. And they know it. This is the reason why they want existing shareholders to "buy into it" and many wont.... I mean WTF. They already owned it LOL.... It's pretty obvious what they are trying to do.. "