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Ann: MUA signs Scheme Implementation Deed with LIFULL Co.Ltd, page-97

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Jausty1919

587 Posts.

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10/06/18

11:34

Post #: 33621856
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Originally posted by Jukebox45 ↑

Where did you get the 10.7% max uplift, Jausty?

Looking at clause 3(2)(Allotment Ratio) of the agreement, I read the bottom cap as being 112% of 0.0753 (the allotment ratio), or 0.084336 LIF shares.

Using a 20,000 share holding - because it's then easy to compare holding versus cashing in - that gives shareholders

Cashing in  = 20,000 x $0.80 = $16,000

Holding = 20000 x .084336 LIF = 1,686 shares @ 8.90 (per your Forex number) = $15,005.  Not a great argument to hold.

But that's at today's Y741/Lifull share.  If over time they get back to $9.49/share (Y790), the $16,000 is reached.  By the time they hit Y850 that's a return of $17,208, and if Lifull can be sold at Y1,000, those 20,000 shares return $20,247

Given the ASX is buying MUA at around $0.70 now, sellers with parcels >20,000 won't realise an average of $0.80/share, so the break even point for converting to Lifull shares will pretty close to where they are priced today:

For example, 40,000 MUA shares would get you $30,000 (20,000 on market at $0.70, 20,000 paid out at $0.80 by Lifull).

40,000 MUA shares lands you 3373 Lifull shares.  At today's Y741/share, that is $29,854.

Holders of >40,000 MUA shares would seem to be better off making the leap to the TSE.

Not totally sure I have all that logic and maths right.  Happy to be corrected if I don't.

DYOR - GLTAH

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Jukebox your logic all looks spot on to me. One thing I’m confused about is the share adjustment mechanism - either it’s summarised inconsistently in MUA’s announcement (vs the actual terms in the contract), or Ive misunderstood something. It seems
to me the latter is all but certainly the case.

I’ve tried to upload 2 screenshots: 1 with MUA’s summary re the 10.7% and the other from the contract. Hopefully these upload ok

MUA Price at posting: 70.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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