re: Ann: TSE: TSI Fund Capital Structure Revi... not great unless you fully exercise your 12/5 rights issue.. otherwise share dilution will see you lose money.
current mkt cap $269m, shares 247m, value 0.918 $/share.
post $110m cap raising value $357m, shares 426m (additional @ $0.7), value 0.838 $/share.
at $0.9, a 12/5 right issue averages out at $0.841/share so it is at no discount to the theoretical value you just don't get shafted for the dilution.
(...there are some rounding in the calcs above, just done for quick comparisons)
this is my interpretation SP wise. as for business wise i'm not sure. debt consolidation is in my opinion good as the infrastructure fund is about low risk investments, they are being conservative and won't be using the money for acquisitions and capital growth etc.
I'd like to hear some more comments on the asset side of things.
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