Ann: Trading Halt, page-275

Important to consider:

im working with very rough numbers, laziness mostly the reason, but the following scenario is correct.

Dr Tillett owns about 10% of RAC. About 14 m shares.

that means with this arrangement he will be granted circa 700,000 options.

at some point he will convert them, I’ll assume, when they are in the money. That means he will need to stump up 3.15m to do so.

now, it’s entirely reasonable that he would sell heads to convert his options. This is done very frequently by directors.

Assuming he would sell at the conversion price, that would be a sale of 700,000 units. If done at $9, then half that would need to be sold.

he would probably want to sell more heads just to cover the tax of the heads he sells. This too, is reasonable and expected.

when this happens, it’s completely expected. This is not going to be a case of a director jumping ship.

In 15 years of ASX speculative trading, I’ve never come across a company that has taken care of its shareholders as well as RAC does.