Originally Posted by
GTM 3442
RPI/RPC was set up as a vehicle to own a controlling interest in PGW.
Some of the owners capital, more borrowed in the RPI bonds. Interest to be paid out of PGW dividends.
This works out nicely. Bonds taken up.
PGW share price trades $1.50 +/- $0.20. PGW dividends pay RPI issue interest. All happyhappy joyjoy.
SFF merger proposed.
PGW share price hits $2.20
PGW/SFF merger falls over. World financial crisis begins. Merriment and jollification all round.
RPI bond issue matures. RPC bond issue made. At higher interest rate.
PGW makes dividend shares in lieu unless shareholder opts out. Oh dear ! Problem for RPC.
PGW suspends dividend. Oh dear ! Problem for RPC.
Agria buy-in, RPC no longer has controlling interest, no control over dividend policy.
2011. RPC bonds due. How to raise the money in the new RP? bond series ?
Given the reason for RPC's existence, sale of PGW shareholding seems to be least preferred option. So expect a new issue of RP? bonds ?
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