CER (ASX) volume in cnp indicates the deal is done?

Originally posted by delio351 ↑

With regards to the substantial interest they've declared, that clearly has got to be a mistake. I wouldnt be surprised if they havent purchased any non-CNP CER equity. That means they wont be able to vote.

I am actually quite confused by the below article in the Australian. It makes no sense. No debt in CER is being converted to equity. They are suggesting that with $78m of CER debt, this can be converted to 3% equity.

Surely this has to be an error!

http://www.theaustralian.com.au/business/property/kkr-snaps-up-centro-retail-debt/story-fn9656lz-1226189782704

KKR snaps up Centro Retail debt
ENTITIES associated with US buyout firm Kohlberg Kravis Roberts have bought $78.4 million worth of debt in Australian property trust Centro Retail Group, a person familiar with the situation said yesterday.
The debt holding can be converted into an equity stake of less than 3 per cent in the company, the person added.

KKR's interest in Centro was disclosed in a filing with the Australian Securities Exchange yesterday.

The filing said KKR entities KKR Financial Holdings, KKR-Milton Capital Partners and KKR-Keats Capital Partners as well as associates took the interest in Centro on November 4. The three entities belong to KKR's public markets business, which manages portfolios of debt and equity securities separate from its private equity business.

In early November, Centro Retail Group requested a trading halt in its stapled securities pending an announcement regarding a refinancing. This came after Centro Retail Group closed the sale of its $US4.3 billion US asset portfolio to an affiliate of Blackstone Real Estate Partners earlier this year, saying it would use most of the net proceeds to retire debt.

...
The sale to Blackstone brought in net proceeds of around $US514m, which the group said it would use mostly to retire much of Centro's maturing Australian debt.

A spokeswoman for Centro Retail Group could not be immediately reached for comment. Centro Retail Group, which has a regional retail property portfolio, has a market capitalisation of $628.8m.

The stapled securities last traded at 27.5 cents a piece.