The existing 10% would just go towards the 52% which will be held by MMX in the merged company.
We as MMX shareholders won't be directly affected by this 10% holding. It won't be subject to the 42.5% dilution like MMX holders shares, because they're MIS shares.
Consequently there will be fewer shares in the new MIS than the sum of all MMX and MIS shares added up, however this 'value concentration' if you like, is in essence a good thing, BUT, it is entirely funded by MMX holders.
We get 0.575 and MIS get 1, but the net effect is that MIS actually get more than 1, because once combined the value of 1 new MIS will be far greater than 1 old MIS.
I digress, but in answer to your question, I'm sure that the 10% holding was incorporated into the calculation of the 0.575 figure. So perhaps if they didn't hold that 10% then we may have only gotten 0.50 or thereabouts.
MMX Price at posting:
0.0¢ Sentiment: None Disclosure: Held
