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Hi,
In answer/appendix 3 for share buyback how did they calculate 120m shares and $10 x 120m deducted from reserves?
Thanks
They are raising $1,320M and using it to buy back shares at their current share price, which is given as being $11 per share.
Therefore they will buy back $1,320M/$11 = 120M shares.
The nominal value of the shares is $1, and therefore as per normal financial accounting ‘rules’ the share capital is reduced by 120M x $1, and the extra 120M x $10 reduces reserves.
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