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hi ghchua,
While scrip is open for everyone, but do you think scrip is meant for the majority shareholder, minorities or everyone? Your "reducing free float" observation will probably answer the question, isn't it?
Or another way to look at it - Have we seen any controlling shareholder declare scrip option but yet didn't take the scrip option for the majority of their holdings?
I doubt the majority shareholder would care about "support of minority shareholders" when doing scrip, ditto the free float gets lower over time. Matter of fact, lower free float justifies scrip more, so as to continue to mop up shares with less friction and on the cheap.
While scrip is open for everyone, but do you think scrip is meant for the majority shareholder, minorities or everyone? Your "reducing free float" observation will probably answer the question, isn't it?
Or another way to look at it - Have we seen any controlling shareholder declare scrip option but yet didn't take the scrip option for the majority of their holdings?
I doubt the majority shareholder would care about "support of minority shareholders" when doing scrip, ditto the free float gets lower over time. Matter of fact, lower free float justifies scrip more, so as to continue to mop up shares with less friction and on the cheap.