Ann: Entitlement Offer Announcement , page-11

I must admit that with a few exceptions I like this deal.

The main thing to like is that it clears all outstanding maturities removing the debt/refinancing risk that has been attached to the stock.

When you are trying to sell assets as FKP are doing it is always best to do so from a position of balance sheet strength. They can now do that which should ensure full prices for the asset sales and potentially expedite them as well as prospective purchasers won't be able to low ball them on price on perceived/real debt concerns.

The main gripe is that Goldmans and others involved will pick up around $5m in offer costs. Nice money for doing next to no work. Considering the discount to last price it was struck at they aren't taking much risk on.

The other thing is that they seemed to have raised more than necessary. Presumably though the extras will be to clean up the remaining 14% of Aveo Healthcare they don't own.

One other positive though was the trading update. Basically improvement in all areas. The pro forma doesn't include the $11m in PBD proceeds or Industroplex $25m either. We are also looking at $90m from Luxe and $120m odd from the sale of Gas 1 in the second half if go ahead too.

Will be interesting to see if it trades below or above the ex TERP price of $1.77 when it comes back on. Plenty to like about it but heaps of punters hate capital raisings no matter what. They ignore the fact it is a pro rata entitlement so isn't dilutionary (unless you don't have the cash to stump up) so doesn't matter what price it is at - it's the TERP that is important.