trust company valuation, page-14

Yes, you are correct. And it makes this valuation meaningless. And to a degree it means the true "independence" of RE is somewhat mitigated.

I personally didn't get to read the AFR article and how detailed it was. All I know is what is quoted on here about PXUPA converting into 40% of the new PPX. Which, assuming it is all scrip, is a totally unacceptable offer.

But the devil is in the detail. it may have been part of a recapitalisation. Maybe they would do a 1:1 rights issue first. Shares on issue rises from 600mil to 1.2bil. Then you get 40% of the new company which would be 800mil shares. And we don't know if the 40% is pure rumor or reliable.

Coastal will be willing to negotiate imo. The bottom line is nobody can liquidate their holding now or anytime in the next few years at anything more than market value. And market value is not an option. Anyone that wants cash now would settle for a reasonable offer.

Ideally their would be a cash component but the european bankers wont allow it and they have veto rights. I'd be over the moon with $60scrip. Basically a 10bagger for me. But obviously their are others that need much more. Others who just want out. Anyone needing a steady income stream.

Negative publicity can hurt. So I think the offer will be better than most are talking about and AFR might be off the mark.

But I fully recognise what some PPX holders have said. Cleaning up the balance sheet (in absence of a take over) is futile if you cant become profitable. So goal one is still profitability and sustainability. And that should be the goal of PXUPA too, as it is increasingly likely that PXUPA will become PPX.