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54.5¢ slater & gordon limited

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asbindia

6 Posts.

27/03/17

20:19

Post #: 23660067
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Originally posted by HaveACrack30 ↑

A potential scenario is as follows:

D4E takes place which sees the banks take over basically all listed equity in the company.

Proceeds from D4E is used to repay part of the debt but not all... this means any proceeds from possible asset sales will still go straight to repaying personal debt.

Once gearing is reduced, banks wanted the company to remain listed so they can sell the equity back to punters at a higher price. Not only have they benefited from getting part of their debt repaid, they now benefit from selling equity back at a higher price that wouldn't have been possible if not for the D4E meaning their support would continue. They wouldn't commit to the D4E unless it resulted in them having the complete equity value for future benefit.

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Hi Sorry I have never seen a D4E before and am quite a novice, so does this mean SGH wouldn't dilute its shares?

What would happen if a shareholder doesn't want to sell their shares? I was under the impression that if a D4E were to happen the share price was plummet, I was looking to come in and buy some SGH. Not a big package just $1500 worth.

SGH Price at posting: 13.0¢ Sentiment: Hold Disclosure: Not Held
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