As the notice says there will be 466.6 M shares on issue after the consolidation of which 60.24 % is held by the top 20 shareholder's. On the assumption the nominee companies hold what I call tradable stock those being :
JP Morgan 4.14%
Citicorp Nominees 3.69%
National Nominees 2%
This represent 9.83% of the shares on issue leaving 50.41% being held by the remaining top 20. Alan Tribe holds 34.02% of the shares on issue. so to me the end result is that around 49.59% or 231.39 M shares are what i term free float / tradable stock after the consolidation.
I would dare to suggest that with that amount of free float and combined with the expected news flow between now and the first quarter of next year we should not see to much decline in the MC as a result of the consolidation. NOW is the time to focus an the MC of the company.
There are only ever two reasons for doing a consolidation either the company is defunct and you want to start again or because the future looks so promising that it make sense to do it now. Remember the first step was the clearing out of all the small shareholders.
I am usually very nervous of consolidations because they nearly always result in a decrease in the MC but in this case I am really pleased.
PYC Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
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