cornerstone investor - good and bad part, page-33

jamesph61,

Genting are most welcome as new investors and energy players, The price Linc Management have achieved selling this large stake in the company and dilutiing existing holders is partularly disappointing considering the dissing of the ASX as undervaluing the company when the price was $1.50 AUD. They just sold a big chunk on SGX at $1.05AUD! Do LNC management consider that fair value or significantly undervalued on SGX?

LNC previously agreed terms to sell a 5% stake at $4 AUD to GCL but later revealed that they considered the huge interest in UCG projects in asia (which has so far resulted in zero binding deals) meant that the potential deal with GCL was not taken further.

Further dilution though conversion of convertible bonds at $1.05 is now expected. Whilst on ASX was $3.40.

If Linc stayed on ASX and saved fees and legal costs of re-list (~$50M?) and avoided dilution how would we be worse off today? Is it better for holders that Bond holders can now also convert so cheaply thanks to the relist and dilute us further?

The injection of capital is welcome, but it is not enough to get any major project done (Arckaringa, Umiat commercial infrastructure, Commercial UCG project) and considering the dilution and the fair value precedent it sets I say cop it sweet - the SGX move is a failure on IPO.

The SP will improve when/if deals are done. No matter where listed, commercial binding deals will help linc SP.