Well I am not happy! It seems management has created a spinoff that doesn't provide equal rights to all shareholders. Mr Bassett along with the rest of management are effectively diluting other existing shareholders by taking up 80 million in the capital raise. A capital raise of 450m in a 1.24B fund is significant. Seek is only taking up 200m and 250m will be taken up by other parties including the 80m to management.
Mr Bassett if you are reading this I am very disappointed in you, I thought you were a CEO that cared about the little guy. Surely the management team are at the point where they don't need more money and their legacy should be more important? The structure of this deal dilutes existing holders, in an instrument that may be assessed as having assets of 1.24B, but that is not what the market is pricing those assets at!
What does all of this mean for existing shareholders? (apart from those in management). Seek has effectively transferred some of the value in the shares you hold to management.
Note I am not against the restructure, but it needs to be rethought and implemented in a was that is fair to all shareholders.
SEK Price at posting:
$28.91 Sentiment: Hold Disclosure: Held
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