In a bid to repel a takeover offer from its rival Oceania Capital Partners Ltd, investment firm Keybridge Capital Ltd may offer to buy back its shares at a premium to Oceania's offer. Keybridge is mulling to use the $20.5 million cash it currently holds for the said buyback, according to Business Spectator.
Nicholas Bolton, executive director of Keybridge, said, "A buyback was something we were considering in the days leading up to the Oceania bid. A buyback is one of a number of options still on the table. We're cash rich and considering our capital management."
Before the November takeover offer from Oceania, Keybridge was in talks with Oceania to buy back the latter's 34.3 million shares at $0.175 apiece. Keybridge has rejected the $0.16 takeover offer on the basis of a report that its net tangible asset value was more than that. According to independent expert Pitcher Partners Corporate Ltd, Keybridge's shares are at $0.223 apiece, the report detailed.
Keybridge has $201 million in tax losses, which could be used to offset tax payable on income in the future. In November, Pitcher Partners pegged the value of Keybridge's total assets at $39.1 million. The independent expert also said the investment firm posted a net loss of $3.6 million in the year to November, Business Spectator reported.
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