Here is the way I read this deal.They have alloted U$30mm to buyback shares at $12C. That will buy back about 4% of the current 84 million shares. CC/Gram have stated they are going to tender shares in the buyback and they own 55% of the company.
In the circular, they state that they expect to be oversubscribed or more than 4% of the existing shares to be tendered. And if so it will mean on a PRO-RATA basis. So since CC/Gram own 55% of FEC, they can tender whatever number of shares it takes @ $12C to get 55% of the U$30mm. So, that only leaves $13,500,000 left for the rest of the shareholders based on what % of the company you own. Most of us only own a small fraction of 1%, so whatever fraction that is, will be the max amount of shares @ $12 the company will buy back from you out of the $30mm .
So since they are only buying back 4% of the shares and if more than 4% of the shares are tendered, due to it being on a PRO-RATA Basis. the max number of shares that they will buyback at $12 is 4% of your shares and it likely could be far less than 4% depending on how many shares are tendered by 10/17.
This is why the share price is not moving anywhere near $12C. I think anyone currently buying at $8 thinking they can soon sell all to FEC at $12 is going to be very surprised.
I am unclear why they made this baffle with BS deal that is supposedly better than a dividend, other than it is typical CC/FEC/CGX Mgt..
That is my read, and please correct me if I am wrong.