The BBI price was capped at 4c as they were in negative territory. PPX will end up in the same position if they don't start making some $$.
The $40+ in your calcs assumes PPX SP at 20c+ ie slightly down from a theoretical 27c (by memory) you established in an earlier post. Maybe not unreasonable.
I'm not comfortable with PXUPA taking the proposed haircut and PPX receiving (IMHO) disproportionate gains.
Whilst I was not pleased with the 4c to BBI holders, I understood it was needed to get the deal done so I can live with a sweetener for PPX holders.
Would prefer a greater conversion eg 420 per PXUPA to see around 12-15c PPX, but as you point out the issue with the Board and control then comes in to play.
Not sure if there are any suitors, but potentially one way to remove the Board issue is to sell PPX post conversion with the Board to follow to "newCo". If this was the case ie there was a suitor, then the plan would be to convert X PPX per PXUPA and then "newCo" will secure all PPX at Yc/PPX.
At least this would provide some certainty for all holders.
This is the same as Hammill did with BBI to PIH and then to BIP. Interesting how directors can look after their own interest and also holders at the same time :)
As an aside - I have not heard anything recently regarding any $$$ to come from the AETD (or what ever it was called) sale. Every time I ring it is always 12 months off. Expect they will have eventually spent all our $.
SRS Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
