spinoff, page-43

Hi Cruiserdog,

Sorry if i came off being rude, wasnt my intention at all.

I am just working off what was said in the Chairmans statement but here is my understanding of what they are saying. Also I am not sure how much value we can subscribe to the diamond business and obviously final docs/details will be important.

So lets assume FMS in total is worth $100, and the diamond business is worth $20 of the $100.

So alternative one is you give the shares in the diamond business directly to shareholders. This is done by way of etc an in specie capital return.

So at the end of it FMS is now worth $80 and we all have as shareholders a diamond company worth $20.

Second option is that FMS just sells (IPO) the diamond business. Say it gets $20 cash for it. Seems this is what management is saying they are doing.

So FMS is still worth $100, shareholders still have the same value as if the company hasnt done anything because cash is received for assets. Of course valuations etc will be critical. If shareholders want to get in to the new $20 diamond business then they can. They will then have the same value FMS share and a new share worth whatever they pay for it because this is really an asset sale by FMS.

I may not be being clear but i see the above two options being equal in terms of treating shareholders, and so I would rather have the choice of staying out of the IPO because im in FMS for the IO,nearology, close to production etc and if we can extract some value from an IPO that can be used to fast track production then lets do it.