abc close to deal on us assets, page-68

Zenitramzepol,

you need to reread it:

The A$750 million is made up of: 60% purchase + Convertible Notes Issue.

A$750 is NOT obtained just from the 60% stake in the US business.
(this is stated at the bottom of the first page in note 1).

100% value of the US Business is $775million US.
Morgan Stanley will buy 60% of this = $465M US
In Australian Dollar Terms @ 0.925 = $500M AUD

ABS seem to believe that the convertible notes will raise an additional $250 million. These represent 10% of the company's worth.

BUT! the company is currently worth $1 Billion.

So what I don't understand is: How does a 10% stake in the company earn them $250mill...it would be more like $100m



Good luck to all holders

Joel