Ann: SGH FY17 Results Presentation, page-177

What is a recap offer that you would vote yes to?

Here are some rough and ready calcs I've just scribbled down on a notepad at Cairns airport to kill some time inbetween my next flight.

SGL Aus FY17

Revenue $226.7m (~75% PIL, highly dependant on advertising)

NLBT $67.2m - don't have NLAT reported on a seg basis but I estimate $62.2m when allocating about $6m in interest expense on the existing A$ debt facilities and adding back the goodwill impairment which ideally should not be recurring.

Net margin -27.4%

So going back to SWC's beloved 15% net margin scenario, FY18 perhaps?

On shrinking revenue, -15% in FY17, let's assume it holds current level in FY18 at $226.7m producing $34m net profit.

No more warrants it would seem so let's assume 95% dilution or 6.94bn SOI post recap.

Let's assume SGH (SGL Aus) trades at a PE of 10x or $340m. That yields a SP of 4.9c.

For context, the current PE multiple is -0.4.

So I struggle to understand why you think your shares are worth more or why you would vote no?