TPG should urge the company to speed up the $60M stock buy back process
Now TPG has one seat in XIN's board, they should urge the company to speed up the $60M stock buy back program to maximize their investment. Buying back more shares would mean their shares in XIN is increased.
I would do that if I am the CEO of TPG.
XIN still has near $600M cash and $233M restricted cash.
TPG required a board seat for a reason.
Here is what I would do if I were the manager of TPG.
1. Urge XIN to speed up $60M stock buy back plan to reduce up to 16% total shares.
2. More stock buy back to increase the value of TPG investment.
3. After massive stock buy back, urge XIN to increase the dividend to $0.50.
The management should do the same thing if they are not stupid.
A few reasons why XIN doesn't do massive buybacks...beyond their $60 million current buyback.
It takes US Dollars to buy back stock....no one offering Dollar debt is going to finance the departure of equity holders since debt holders only care about debt holders....their interest payments and safety of principal.
The Chairman owns a different class of shares than other shareholders such as myself. He can't buy and sell his shares at will, for example. He apparently is satisfied with a rising stream of dividends. He doesn't even have to buy his own private jet.
The Chairman has others who have needs beyond equity holders...employees, for example. He probably has several sons who wish to be big-wigs in the real estate industry.
The real estate industry is about size....get big or die.
As for TPG "urging".....that is a laugh...TPG has 6 million shares and the Chairman has 30 million.