Originally Posted by
Snapper
Don't think so, the damage is being done now. The current management have choices about how they go about reducing debt and this option gives them(the management company) a brilliant result while shafting existing shareholders. How many property company capital raises do you see at a 60% discount to NTA?
Some back of the envelope figures
Post - consolidation no. of shares 188,500,000 NTA $2.10 $395,000,000
Number of shares to be issued 175,000,000 say $0.80 $140,000,000
less management company buyout $ 43,000,000
Total number of shares 363,500,000 NTA $1.35 $492,000,000
For existing shareholders whose pre consolidation NTA was $0.84, that has been reduced to $0.54 cents.
What they should be doing is listing on the market then selling down properties - they have managed to sell a number over the past year at book value so what's the problem with continuing that process?