ann out!, page-75

its not so much about how much NAV csi wants. Basically he is paying $600mil for 50% of new BBI. so if we take 5c for sparcs/beppa conversion, we would have roughly

(770mil beppa *20)+ 100mil sparcs *20= 17.4bil new shares

plus existing 2.5bil= 20bil approx.

existing bbi would be about 2.5/20=12.5%

the csi then comes in over the top, paying $600mil for 20bil shares@3c a pop.

csi now has 50%, 43.75% for Beppa/sparcs, and 6.25% for existing BBI.

A 1:1 right issue at 3c is then offered to the Beppa/sparcs/BBI holders, who if fully subscibed could reduce csi to 20bil/60bil=33.3%

bbi=5bil/60bil=8.3% existing BBI

Beppa sparcs 34bil/60bil= 57%

No details of exactly how the rights will be applied, so it could be that BBI are exlusively offered the 20bil shares and none for Beppa, or 10bil to BBI (4:1 rights) and 10bil to Beppa (1.7:1 rights).

that would greatly reduce the control Beppa has over the final company structure. and reward BBI holders more for the dilution.

obviously at 5c/share, it looks like the prevailing price for BBI is about 3c, but we could end up converting at a higher rate yet.

I have a sneaky suspicion that the $600mil rights issue will be used to buyback sparcs in cash, thus reducing the number of shares required by csi to obtain 50% share and keeping more for existing BBI.

only time will tell with alot of these things.

if only we can get BBI up a few cents again...sigh