UPDATE City Lodge - Odd Lot Offer and will this be GOOD to buyCity Lodge, has been in this tiresome Symmetrical Triangle since October 2022...
However, recently it's broken above which is showing positive signs that there is upside to come..
However, in the most recent SENS update there was a mention about the Odd Lot Offer.
So let's break it down and what it means.
1. What's Going On:
As of October 16, 2023, there were a bunch of small-scale shareholders in City Lodge, each holding fewer than 100 shares.
These investrs are referred to as "Odd-lot Holders," which make up 58.22% of all City Lodge shareholders.
However, when you look at the total shares they own, it's just a tiny 0.06% of the market.
Now, managing these tiny portions costs a lot, creating a headache for everyone.
2. The solution
To solve this issue, at City Lodge's board of directors are suggesting an Odd-lot Offer.
This means they want to buy back the small amounts of shares from these Odd-lot Holders, making life simpler for everyone involved.
3. So what do these Odd-lot holders get?
If you're one of these Odd-lot Holders, you get a chance to cash at a price that's 5% more than the average value of City Lodge shares over the past 30 days.
It's like a special deal, and you won't have to pay any fees to make the transaction.
4. How it works
To make this happen, City Lodge needs approval from its shareholders.
They discussed it at the Annual General Meeting on November 23, 2023.
If the plan gets a green light, Odd-lot Holders can decide to sell their shares at the offered price or keep them.
5. The tax story
They considered the Odd-lot Offer isn't a dividend but more like a return of capital.
This decision has some tax implications, so they suggest you chat with your tax expert for the details.
City Lodge wants to simplify its shareholder list, and if you're an Odd-lot Holder, you have a choice to make – take the deal or keep riding the City Lodge wave.
