a share swap?, page-8

Their are about 600mil shares on issue. So if we take a 50:50split instead of the proposed 60:40 split, then PXUPA get 600mil shares between 2.8mil hybrids. So about 215shares? And at 6c that's about $13.

And although PXUPA is listed as equity on the balance sheet, it is segregated from the PPX equity. So I would assume the NTA/equity will increase by approx $285mil when PXUPA are converted into shares.

So you go from 600mil shares and market cap of about $35mil (ie ~6c/sh) to
1.2bil shares and market cap of about $320mil (ie ~ 27c)

And the 215shares is now valued at $58.

I assume that is what they are trying to do?

And by PXUPA giving up some of that equity, it is re-assigned to ordinary PPX holders. SO your 6c also rises to 27c. So both parties win and value is unlocked.

Also, though PXUPA has no minimal conversion rights, and PPX have no urgency to condiotionally or unconditionally promote this transaction. They have outlined the benefits in doing so.

It seems they are getting ducks in order for a potential take over or injection of fresh capital. Both of which requires a cleaner structure without the hybrids.

Realistically we would trade at a discount to the NTA, so 27c is probably wrong. But anything that gets PXUPA about $40 is great return from these levels imo.

Maybe I've got it totally wrong and the $285mil equity is accounted for elsewhere?