First of all its closer to 1.2 B, but yes, with a mixture of debt and capital raise for existing holders, obviously GEAR will have to participate to raise the equity fund component as the small free float probably wont have the financial capacity or sheer numbers to raise that amount of money. If GEAR dont participate then the sale will not happen. We are yet to see the details of the offer to shareholders but other posters above have attempted to suggest some reasonable possibilities.
I guess the perception of loading up the ASX vehicle with debt while privatizing the profits into a marketing agreement and relocating the profits overseas has been the complaint of many SMR holders.
Obviously the cynics see lots of dilution and a mechanism for GEAR to increase their holdings in an attempt to dilite the free float into oblivion.
The Latimore marketing agreement is a different issue, whether thats got the ability for Latimore to syphon profits out of SMR or a taxation thing, or something else has been up for debate on other threads in the past.
SMR Price at posting:
$1.18 Sentiment: Hold Disclosure: Held
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