SKT Sky Network Television Limited.

[mistaTea]

Reason why it is a 2.83 : 1 rights issue is because the underwriters are only prepared to back the deal on such a basis. It’s pointing a gun to the head of existing shareholders.

Agreed, they have essentially forced existing retail shareholders to participate by going 1 : 2.83.

You can apply for up to 20% more than your allotment too. So wealthy shareholders who take up their allotment and then some will probably end up doing very well out of this, whereas the shareholders with limited means that are unable to participate will do terribly.

[Balance]

Agreed, they have essentially forced existing retail shareholders to participate by going 1 : 2.83.

You can apply for up to 20% more than your allotment too. So wealthy shareholders who take up their allotment and then some will probably end up doing very well out of this, whereas the shareholders with limited means that are unable to participate will do terribly.

Yup - like the punters who piled in the last few weeks.

[Cadalac123]

Certainly nothing to indicate positive news pushing the sp up!

Lol how about the sudden distribution over the last 12 days .

NZX is a bit of a joke of an exchange isn’t it . Yeah sure no one knew about the capital raising at sub 20c and that had nothing to do with the heavy distribution of shares!!!

[Beagle]

Reason why it is a 2.83 : 1 rights issue is because the underwriters are only prepared to back the deal on such a basis. It’s pointing a gun to the head of existing shareholders.

I think its disgraceful and disrespectful to existing shareholders. Not everyone can write a cheque for the required amount. Institutions are basically giving the middle finger to this issue, the size of the placement redefines the meaning of the word pathetic.

The systemic problem I see is that management think live sport is the panacea for all their woes. Oh wait...now its broadband. They literally seem to have no idea that many people subscribe to watch anything else but sport on Sky. Disc: Sky subscriber without sport. (watching vastly overpaid, spoiled and idolized athletes chasing silly balls around is a hugely overrated form of entertainment in my opinion. Who cares who wins, what does it really matter....).

[theace]

Have I understood this correctly .... if I had a 100 shares, I can apply for 283 additional shares? and if successful I'll end up with 383 shares?

[winner69]

Have I understood this correctly .... if I had a 100 shares, I can apply for 283 additional shares? and if successful I'll end up with 383 shares?

Yep ...but you need to send them $34 as well.

[Ogg]

Have I understood this correctly .... if I had a 100 shares, I can apply for 283 additional shares? and if successful I'll end up with 383 shares?

Technically you can apply for 339 shares and pay them $41. Might only get 283 though and a $7 refund.

[airedale]

I own 61000 shares, does this mean at 2.83/1 I can get 172630 new shares for 12c = $20715.60c

Add to what my existing worth is ($20130) so $40845.60/233630 = $0.174c per share in theory after the new raising.

Is this correct?

The thing that I take from this fund raising, leaving aside any consideration of earlier buys, is that this is fully underwritten at 12 cents. So somebody {instos, fund managers, professionals etc.} is willing to take a punt at that price. So if the price gets to .174 cents again you will be back in profit. 12 cents to 18 cents, will it make 50%.? after the fund raising. I think so, you pays your money and takes a chance.

[winner69]

The thing that I take from this fund raising, leaving aside any consideration of earlier buys, is that this is fully underwritten at 12 cents. So somebody {instos, fund managers, professionals etc.} is willing to take a punt at that price. So if the price gets to .174 cents again you will be back in profit. 12 cents to 18 cents, will it make 50%.? after the fund raising. I think so, you pays your money and takes a chance.

Like the the use of the term fund raising .....like a charity need some cash to stay afloat.

[moimoi]

Well done to the contrarian buyers of the bonds over the past couple of months.

They look to have a better chance of being made whole now via the wipe-out of the equity.

GLTA.