bbi cap raise? - afr, page-9

Hi Guys,
I had precisely the same idea as a solution a few months ago to BBI's need for ready cash and at the same 20c level after consolidation, and to be conducted in the first qtr of this fin year, but I hadn't considered the changing of the BEPPA status as part of it.

For a cap raising to be attractive to instos they will need some surety or a *huge* discount over NTA so they may get a deal which replaces them as the preference holders once BEPPA's are absorbed into BBI's.

I can see another Cap raising taking place again as the price nears 45-50c if they need ready cash again then to knock debt down.

My take on the sale of DBCT is that BBI do not want to sell it at all even though they need the cash, and I agree with them totally as it is an excellent cashflow compared with other under-performing assets.

It is a basic survival instinct strategy without shooting themselves in the foot at the same time. Getting the BEPPA situation voted through will be interesting, I am sure the SPARCS voters will have their own take on it. The exceptional Company Circumstance clause may be invoked.

just my two flat rocks and a piece of string worth.

ifandwhen

discl. hold bbi and beppa