I was wrong with my stipulation in an earlier post that PXUPA distributions will continue. However, due to company's desire to conserve cash in view of continuing eurozone malaise and the buyback option being given serious consideration as part of the current strategic review means distribution suspension makes sense.
And if hybrids are able to be bought back at a decent discount, PPX shareholders will have more equity left for them whilst PXUPA holders will get an exit option at substantially higher than current market prices.
A reasonable approach for all parties concerned! IMO it's time to hold on to both PPX and PXUPA, and wait for the inevitable turnaround as the eurozone situation gets resolved and paper industry cycle continues to come off its lows.
SRS Price at posting:
8.8¢ Sentiment: Buy Disclosure: Held
