The tender attracted more sellers than I thought it would but it was still undersubscribed. I did NOT tender as I think its reasonably possible it goes higher in the years ahead. Its not going to pop 50% or double in 3 years but modestly higher is my hope. I would also like to see a higher dividend. At least 2% but a case can be made for 3-4%. The current 0.60% is not enough.
Independence Holding Company(IHC) announced today the preliminary results of its tender offer to purchase up to 2,000,000 shares of its common stock at a price per share of $20.00, net to the seller in cash, without interest, less any applicable withholding taxes, which expired at 5:00 p.m., Eastern time, on June 26, 2017. Based on the preliminary count by Broadridge Corporate Issuer Solutions, Inc., the Depositary for the tender offer, approximately 1,390,266 shares of common stock were properly tendered and not withdrawn, including approximately 28,983 shares that were tendered through notice of guaranteed delivery and 5,689 shares that were tendered as odd lots. Accordingly, IHC expects to accept for purchase a total of 1,390,266 shares at a purchase price of $20.00 per share, for an aggregate purchase price of $27,805,320.
The number of shares tendered and not withdrawn (including the number of shares tendered as odd lots) are preliminary and are subject to verification by the Depositary and the proper delivery of all shares tendered (including shares tendered pursuant to guaranteed delivery procedures). The actual number of shares validly tendered and not withdrawn will be announced following completion of the verification process, which is expected to be completed on or around June 30, 2017. Promptly after such announcement, the Depositary will issue payment for the shares validly tendered and accepted under the tender offer.
As of June 26, 2017, IHC had approximately 16,377,756 shares of common stock outstanding. After giving effect to the results of the tender offer, IHC expects to have approximately 14,987,490 shares of common stock outstanding.
IHC remains committed to returning capital to its stockholders through its previously announced share repurchase program. Based on the preliminary results described above, IHC estimates that after the expiration of the tender offer, it may continue to repurchase up to 780,407 shares of its common stock under its current repurchase program commencing ten business days after the expiration of the tender offer. Under the repurchase program, IHC may repurchase its shares from time to time in the open market or in privately negotiated transactions. The amount and timing of any repurchases will depend on a number of factors, including, without limitation, the Company’s results of operations, financial position and capital requirements, business and market conditions, including the price of shares of its common stock, and legal, tax, regulatory and contractual constraints or restrictions.
12% tender offer at $20. Book Value is $25.53 and no insider nor the majority holder are selling.
Thus, I think the offering will be undersubscribed.
The stock would seem to be worth closer to $21-22 anyway. Its as if they are basing the tender offer price on last years book value of $18.73.
So, why aren't we trading for over $20 ?
$21.50-$22.00 would give me something to consider. $20 does not. Its too low and the tender was a waste of resources in my opinion.
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MAY-2016 Independence Holding Company NYSE : IHC Correlation Histogram
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks May-2016 1,000 Day Parameter 4,338 NYSE Stocks Price Analysis This stock mode of correlation coefficient is 0.7 In other words, the correlation coefficient of the other stocks
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