quote:Originally posted by nelehdine

The APTGB's convert to Ords on the 30/06/07 ... compulsory conversion to Ords.

The conversion price is 92c ... so for every APTGB you own ( remember the APTGB's are effectively a bond with a $1 face value and 8.50% coupon on that face value ) you get to swap it to APT ords at 92c. So another way of putting it is that for my $1 APTGB I get the following equation.

1 / 0.92 = 1.087

So, I bought 5000 APTGB's at $1.29 , I then sold 5000 APT's which I own at the same $1.29 price.

On the 30th June my 5000 APTGB's will convert to 5,434 Ords and for the cost of the brokerage hey presto I have 434 "free" APT's. At today's price of $1.36 that is $590.

I have done this on a total of 25,000 APTGB's so far so will receive 2,170 free APT's in June ... all risk free !!!! )
Thanks for pointing out this arbitrage opportunity, Enid. I managed a series of similar deals, over the past week or so, i.e. swapped 25,000 APT for 25,000 APTGB, all at 130. It took quite a bit of patience but we got there in the end.
I owe you one!