Hello. I plugged some numbers into a spreadsheet. It appears the...

Hello. I plugged some numbers into a spreadsheet. It appears the financing deal is for around US$300m for Two Modules because if the financing was for one module POSCO cannot obtain a 19.99% shareholding unless the 50% equity is raised at around 30 cents per share, which makes no financial sense in terms of share price gain. Therefore, if the 50% equity raising is at around 10 to 13 cents per share, POSCO can gain their 19.99% shareholding.

For example, if the 50% equity capital raising is at 10 cents per share:

* POSCO invests US40M at 0.64 exchange rate = 625 million shares
*OTHERS invest US$110M 0.64 exchange rate = 1,720 million shares
* CURRENT SHARES = 1,100 million
* TOTAL SHARES = around 3,445 million
* CURRENT POSCO SHARES = 126 million
* POSCO holding around 625m + 126m divided by 3,445m = 21.8%
* Raising at 13 cents per share = POSCO 19.99%

Therefore, the financing appears to be for a US$300m to $320m package comprised of 50% debt & 50% equity where the equity will be raised at around 10 cents to 13 cents per share. However, the problem with the higher 13 cents per share is it reduces the upside for investors but is OK if BKT can receive US$1,200/t for their product.

I guess BKT will do a pro rata capital raising for its shareholders.