Ann: Market Update in relation to PaperlinX SPS , page-18

re: Ann: Market Update in relation to Paperli... Thanks Aussted,

From my earlier post, paying $115 million to receive a net $170 million immediate benefit works for me every time.

So does paying $142.5 (ie $50 per PXUPA) for a $142.5 benefit - and this may be a way to go if a 50% dilution of PPX occurs from a 'white knight' or other party ( "WK") ie no PPX to PXUPA as part of the deal for PXUPA.

From Rick.Wills.99's back-of-the-envelope calculation of PXU value:

Current Assets 1,003m
Total Liabilities -800m
Net Current Asset Value 203m
Number of PXUPA 2.850m
Value per PXUPA $71

Value of PPX = $0

The "WK" deal is 50% PPX equity for $142.5 mill. May be too steep - so PPX to contribute to the $142.5 via a CR.

Not my genuine area of expertise but if the $200 mill is around the mark, the wash up for PPX holders is rather than $0, the PPX asset backing would be around 17c/PPX ie $200 million /1,200,000 shares. So there is some benefit in participating in a CR which may need to raise $36+ million.

If this occurred, the total PPX on issue = 600 x 2 = 1.2 million plus 1.2 to WK, so 2,400 mill total. Note: A consolidation would probably need to follow.

$200 mill / 2,400 mill = 8.3 c/PPX

Further, PPX holders can participate in future upside (albeit @ 50%), and PPX has the PXUPA restrictions on capital structure removed.

Above is pure speculation, but shows that a deal can get done.


PXUPA only