Mayberry buying back its prefs
Published:Friday | September 17, 2010 | 12:00 AM
Sabrina Gordon, Business Reporter
Mayberry Investment Limited will in a week's time redeem the more than 120 million 12 per cent preference shares it placed on the market three years ago to raise $360 million.
At the time of issue, the preference shares was slated to be redeemed within a three-year period, a transaction that will cost the company over $400 million according to the market value of the shares outstanding.
The company will pay the same $3 a piece for the 120,114,929 that they were offered at in 2007. The the Mayberry prefs have traded this week at $2.88.
Mayberry, with assets at the end of June of $29.6 billion, has not said how it will fund the redemption, but a company spokesman said the firm had made adequate preparations.
Decline in income
The company's most recent financials, at the end of the June quarter, showed cash and cash equivalent of $477.8 million.
The investment house reported a net loss of $10.9 million for the quarter, largely on the back of a decline in net interest income and other operating revenues.
Since listing on the stock exchange, the preference shares have seen moderate trading, crossing the floor 45 time last year with highest volume traded during the year of 661,000.
During that year, the share price drop to a low of $2 in February before raising to a high of $3.09 in June.
For 2010, the prefs have traded 24 times with highest trading price being $3.
The shares at a fixed rate of 12 per cent, annually pay returns on a monthly basis, and last paid dividend of over $5 million to shareholders in August.