check mdt company news , page-32

Just want to pick up on something McGustoNew said, as its the bit that's been bugging me and if this ends up happening, might mean things are not as grim as I thought.

If the Trust were to issue further units to current holders and THEN the do the cap raising issue, provided the numbers work out, current value would be preserved, or at least not badly diluted?

E.g. After the EPN, there's about 1.08b units on issue. If they issue 3 for every 1 to current holders, there would then be about 4.3b units which notionally hold the current equity in the assests i.e. $306m. Then the cap raising - another 3b units are issued at say 6.7c to raise $200m.

End result is that there are 7.3b unit on issue. Net assets are $506m as the new $200m pays down debt. NTA is about 7c per unit, but exisitng holders have 4 times their original holding, so comparing apples - 28c, a reduction of only 4c and most of that happended with the EPN. I can live with that.

There's probably a hole in the logic that someone will pick, but unless they do something like this, I just can't see how this is in any way equitable for current holders.