CEOChair. A set of scenarios for you:
SCENARIO 1:
1. Assume IMK have US$225m LYC convertible bonds at A$0.10 conversion price and a FX 0.75
2. The LYC SP rises to A$0.17 for > 30 days
3. LYC obtains a loan for A$300m (Fanciful I know BUT possible)
4. LYC issues MK with a redemption notice for US$225m = A$300m.
4. MK gets paid A$300m plus accrued interest.
SCENARIO 2:
1. The LYC SP stays at A$0.155
2. MK converts bonds into 3000m LYC shares
3. MK sells shares to institutional buyers at average price of A$0.14
4. MK's gets paid A$420m
5. MK's profit on debt conversion = 3000 x (A$0.14-A$0.10) = A$120m
The real numbers will be different but the orders of magnitude will be similar. So Mk's motivation for doing what they are doing is quite simply a lot of money. What would you do in their shoes or should I say in MK's CEO Chair ?
Chart, page-23
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Last
$6.76 |
Change
0.020(0.30%) |
Mkt cap ! $6.318B | |||
| Open | High | Low | Value | Volume |
| $6.70 | $6.82 | $6.68 | $12.37M | 1.829M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 4000 | $6.75 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.78 | 7217 | 2 |
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| Last trade - 16.10pm 18/09/2024 (20 minute delay) ? |
| LYC (ASX) Chart |