Distribution of Shares Between Controlling & Non-Controlling Shareholders After Buyback

Distribution of Shares Between Controlling & Non-Controlling Shareholders After Buyback

Shareholders Percentage of shares Number of Shares
Controlling shareholders 54.7% 14,856,300
Non-Controlling Shareholders 45.3% 12,291,321
Total Shares 100% 27,147,621

 

The repurchase will have many adverse effects on the different shareholder groups. The non-controlling shareholders who did not tender their shares, will have experienced a major increase in the value of their shares. However the non-controlling shareholders who did tender their shares would have experienced a 20 cent per share gain in addition to the increase in the market value of their share. The effect on the controlling shareholders will be as follows, it will increase negotiation power if in the future the shareholders would want to tender their shares. This will result in if CPK would have to purchase their shares at a premium which would comprise of 1) a loss in the stake of the corporation and 2) a loss in value of control.

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