Let me explain with an example...
A company has 100,000 shares, and wishes to conduct a 2 to 1 consolidation to reduce the number of shares it has on offer. After the consolidation the amount of shares on offer is 50,000.
If you owned 10, 000 shares prior to the consolidation, you hold a 10% share in the company (100,000 / 10, 000 = 10%. After the consolidation you now have 5, 000 shares, and you will still own 10% of the company (50,000 / 5,000 = 10%). Nothing has changed.
So in theory, nothing changes from the perspective of company ownership I.e no dilution etc.
A consolidation is simply changes the amount of shares on offer respectively for ALL shareholders. The company value is not changed.
Ann: Notice of Extraordinary General Meeting and Proxy Form, page-43
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