Ann: Successful completion of Retail Entitlement Offer, page-2

Wow considering this is non-renounceable I am amazed that only 53% of retail holders took up the offering. Even if you took up the rights issue and sold on market, you would make a tidy return on the outlay. The disappointing aspect of this raising is that retail investors were unable to apply for extra rights in the issue. This whole raising was at a disadvantage to retail holders and SGR management need a bit of a kick up the backside over how they have treated retail holders.

First they made the rights issue non-renouncebale, which may have some justification given the urgency. Secondly they allowed institutional/large holders to obtain a much bigger slice of the pie at a discounted rate. If they allowed retail holders to apply for additional shares in the issue, this would have alleviated some of the unfairness. I also don't see how this would have had any negative impact on underwriting the issue and it would have created a more stable shareholder base, with a higher proportion of slow moving retail investors.

PS They certainly pumped up the urgency of the rights issue and there is some argument that it was overblown. Considering the changes to the NSW gaming tax are yet to be passed they had time on their side. Instead they have effectively diluted retail holders, to the benefit of the a few big new investors and the underwriters.