RE:RE:RE:RE:RE:AAB Shareholder activism - sharing ideasOk so we let's take you e.g. and #'s and transpose that to AAB. We know the AAB NAV = roughly $50M. So its trading at a 60% discount from NAV. Offering 95% of NBV buybacks to a ceiling of 10% of the float is fine when your shares are trading that close to NAV but ... you'll never get the directors or big block long term shareholders to agree to pay the 2x+ current market premium on the AAB shares being bought required to make this happen. I honestly don't even know what the NBV is for AAB's current assets because I have no clue what we paid for most of our holdings but it doesn't matter. The spread between the NAV per share and current share price is too large for this option to make sense for those insiders who would b purchasing. Why pay. 40 -.50 A share as buybacks when you can go to the retail market and pay .20 ? Like I said... trying to get momentum for a full asset sale while the commodities markets are strong and asset values are relatively high is the option for getting close to full value to shareholders that seems most realistic to me. Because we are such a large shareholder of some of the companies we hold ... We'd likely need to sell our shares in those investments at a discount ( 66-75%) to exit them. But it would still represent a big, 2-3x win for most shareholders. That's a proposal I could not only get behind but I think would have strong support from the retail side. Don't think Stan and Co. would support it though. It basically means dissolving their Co.. which I doubt they would agree to.
15Stanmore wrote: Hi ch1,
The annual buy back option is offered on a trust unit like EIT.UN where each November unit holders can opt to have 10% of their holding purchased by the fund at 95% of NBV on a specific day (December 11, 2017 I recall this year just ended). You can also opt to have an additional pro rata share of any of the units that did not opt to be bought out. EIT.UN has traded at up to a 10% discount from NAV, so this is a way to allow current holders to sell out at closer to the true value of the fund.
I do believe it would be possible to offer all existing shareholders of AAB the option to sell 10% of their holdings back to the Company at say 95% of the Net Book Value as determined at a pre set valuation date. I would be happy to get this small bonus, while seeing the overall float of issued and outstanding fall.