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It's acutally pretty good news, and is another step towards ensuring their survival.

Scarborough are taking shares in Valad in exchange for $67 million, the balance owing of $11 million is not payable until 2012 plus interest.

This will give Scarborough a holding of 19.9% in Valad.
Obviously it's not the best deal they could have brokered because the shareprice is so low.
But if $67 million eqautes to 19.9% of the Valad than that equates to around a market cap of $335 million (correct me if I'm wrong) 20% is one fifth of the market cap therefore 5 x $67 million = $335 million.
Currently the market cap is $135 million so the issue price of the shares has to be far higher than the current share price.

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