Hi Ozzie,
there are no pros for a BBI Ordinary holder with regard to the Sparcs conversion.
Say you were a Sparcs holder and assume the following:
* you paid 14 cents Kiwi for your Sparcs
* exchange rate is 1.27 Kiwi for each AUD
* VWAP after 2.5% dicount is AUD 3 cents
Therefore you paid 11 cents AUD for $.0787 AUD. You can convert $0.3935 AUD into BBI ords. Therefore your 11 cents AUD buys you just over 13 BBI Stapled Securities, plus you have $0.3935 earning 8.85% to November and 10% therafter if you elect to rollover.
If you can sell at 1 cent your Sparc remaining is free carried. If you believe that BBI will survive and make asset sales you may hold. In this scenario Sparc holders will have 45% of the company.
Therefore, were some thought the sp would go to 30 to 40 cents (short-term) once corporate debt was cleared it now will almost halve. To a bullish Sparcs convertee this would still be a fantastic return (e.g. 13 *15 cents = $1.95 AUD), plus still holding the remaining Sparc.
Naturally the numbers are rather rubbery, as it will all depend on VWAP, the number converted, asumptions used etc.
This are my own calcs, I am happy for anyone to disagree.
Cheers
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