Thoughtful post. There are a few good reasons for doing this. 1)...

Thoughtful post. There are a few good reasons for doing this.

1) It binds SK to AUZ's financial well being, not just in terms of what SK can get out of AUZ as a customer.
- If AUZ are well received by the market, then SK are in a position to benefit because the valuation is based on the perception of future earnings, not necessarily related to Sconi. SK are thus incentivised to see AUZ prosper.
- If AUZ are not well received after the investment, SK also lose.
2) It supplies AUZ with cash at no cost to themselves in terms of materials or labour.
3) It allows SK to block a hostile takeover, even if the equity is diluted by a further 100% from the present level (including SK's 20%).
4) As you say it is under the threshold of influence on the board of AUZ, which is the right thing IMO.

SK need the product, so the main thing here is point 2, that it is an easy way of obtaining cash by issuing equity into what we would hope to be strong hands.