re: Ann: Non-renounceable Entitlement Offer D...
Good Evening All
Looking at table (b) on page 22 of EXT's Offer Document it shows that currently KAH, PRL and their Associate control 50.2% of EXT's shares.
After the Offer and Placement it shows that if the offer had a 100% take up, this percentage would fall to 49%. Even if there was only a 75% take up, IMHO the actual percentage will be higher, their percentage would still fall to 49.3%.
This would mean that if KAH, PRL and their Associate wanted to maintain absolute certainty of winning any vote they would need to increase their holdings by around 1%, or 2.4m shares, post the Offer and Placement.
Purchasing that amount of share in such a tightly held stock as EXT would certainly push the price up.
Would they be happy to be diluted to 49% or would they be prepared to pay the price to keep control.
Only time will tell.
Regards
Steve
EXT Price at posting:
$9.44 Sentiment: LT Buy Disclosure: Held
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