Grand Compass Ltd (GC) is the biggest casino company in South Africa. Below is the list of itsshareholders:

Vasco Goodwood Ltd 34%

Northern Wind Ltd 12%

Flamingo West (Pty) Ltd 8%

Ms Mary Boardwalker 6%

General Public 40%

GC has a large cash balance and management has recommended to shareholders that GC undertakea share buyback of 60% of the shares that are held by the general public.

Which of the following statements is true?Grand Compass Ltd (GC) is the biggest casino company in South Africa. Below is the list of itsshareholders:

Vasco Goodwood Ltd 34%

Northern Wind Ltd 12%

Flamingo West (Pty) Ltd 8%

Ms Mary Boardwalker 6%

General Public 40%

GC has a large cash balance and management has recommended to shareholders that GC undertakea share buyback of 60% of the shares that are held by the general public.

Which of the following statements is true?

a) Vasco Goodwood Ltd will not be happy as a share buyback will decrease its shareholding in GC.

b) After the buyback, Vasco Goodwood Ltd will have more than 35% shareholding and this will trigger a mandatory offer assuming they don't participate in the buyback.

c) If earnings remain constant, the earning per share of GC will decrease making GC and easy target for takeovers.

d) The general public will always be willing to sell back their shares to GC because this will increase the value of the company.