Great!. 'Corporate reorganisation' mention will make some...

Great!.

'Corporate reorganisation' mention will make some employees of LD & D nervous.

That the booklets will be sent out with a closing date for retail shareholders accepting the offer of 14 December 2020 doesn't give us much time to decide. But BGA needs to complete this transaction quickly given the January 2021 date specified.

The ability for us to apply for up to 50 per cent more shares than we'd otherwise be entitled to is good, but if I read it correctly the overall situation is still dilutory for retail shareholders.

Placements to institutions give certainty rather than 'relying' on an uncertain takeup percentage from retail shareholders. There was one recent SPP I observed (for Tasmanian second tier salmon company HUO) where only $2 million was raised instead of the objective of $4 million with only nine per cent of retail shareholders taking up the offer.

The gold standard was REH (my largest holding) that had a non-renounceable offer like BGA but also an SPP, and so I was able to subscribe for a good deal more shares to ensure I was not diluted, and REH accepted my application in full.

I wish companies like BGA would copy the REH approach as REH (like SOL, BKW and so on) is a company that despite being owned 67 per cent by teh Wilson family, cares about retail shareholders. BGA is by no means the worst but it has not reached the REH standard with this offer in my view.

If anyone buys BGA on market tomorrow (Friday 27) when trading resumes, one won't be able to avail of the offer as the transaction would not be settled until 1 December 2020 so BGA wouldn't have registered those shares by 30 November.

In the past, some companies with share offers like this have seen weak share prices while the offer is open so one can always try to buy on market.