Do not forget the price of deal is likely to be 7.00 ~ 7.20 i will use 7,10 as an example. 200M AUD divided by 7.10 is 28 M shares. This will dilute EPS, revenue per share and book value per share. with 905 M shares outstanding it will only be about 3 %. Still a dilution.
What I cannot figure out is Why Lynas management is doing this now? They are selling at a 18 month low! only thing makes sense is they believe price is going lower.
Unless REE prices go higher quickly they do will need Cash in a year or two in spite of 1B AUD on hand. But why now? Why not wait? I guess they just do not see the short term possibilities that many on this board see.
It will give a nice improvement to book value which is currently 1.3 B AUD or 1.43 AUD per share. Still way below share price.
LYC Price at posting:
$7.10 Sentiment: Sell Disclosure: Not Held
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