capital raising, page-110

Under any demerger existing shareholders DO get free shares. Its like the company paying a dividend/capital return but instead of cash you get shares in the demerged company, an in specie distribution if you will. As part of the demerger there may be further shares issued to new investors or existing shareholders by the new company but this is like any capital raising. The company CANNOT sell you something you already own but of course can raise further cash.

The unlisted options are only valid till 31/12, probalby as a kicker to the sophisticated investors to say that if there is futher dilution on demerging then your interest is covered. Explains also the smallish discount. But this doesnt mean you wont get shares as part of the demerged entity as a normal shareholder of ACL.

The only way a demerger makes sense is if they think the sum of the parts is worth more than the whole. I can somewhat see the reasoning- Oncology is valued at almost nothing by the market, and standalone ACL Fonda may be rated by the market as an almost annuity play, will be interesting to see how Mr Market reacts to this play. At the very least the Board and PS have done something interesting...