re: Ann: 2009 First Half Results and Capital ... hyosuk87,
It's fully underwritten. So if say you don't want to participate in the entitlement offer, your entitlement will be taken up by the underwriter.
There is no dilution to the book value since the 27c offer price is much higher than the current book value. It improves the current book value actually.
It dilutes future PE, but at some point down the line I think a return to the record earning level of 2008 is possible, although it won't be in 2010. If you look at say a 10cps earning in a few years time (i.e. including the new issues) and a PE of 12 (reasonable expectation) that would mean a sp of $1.20.
For me personally a sp anywhere near $1.00 would mean massive profit, at 50c would mean very decent profit, at 27c would mean I can still buy a new car. So I will hold and will participate in the entitlement.
I personally like the "fully underwritten" aspect of the raise because it pretty much guaranteed the success of the raise and consequently guaranteed the debt issue is solved.
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