Given that there are 1,077,022,552 issued shares, 11 million or so turnover isn't particularly significant.
Perhaps of more interest is that there was relatively little change in the Top 20 holdings between December and mid July. A couple of institutions, in their role as nominees, sold down by about 45 mil, but Citicorp took on about 17 mil and two SMSFs came on board with nearly 18½ mil between them. For the rest, only Brisport reduced significantly (by 7 mil).
If there are still discussions over the terms of the proposed c.r., can anyone defend the equity holders?
Refusing to contribute to a raising might be a weapon, and (if there have been no changes since 16 July) members of the Camuglia family hold over 44 million. The next largest private holders are Lexband, with 35 mil., Yeager (28mil), and two holders - SMP Dawson P/L and SMProvident P/L - who could be associated, with almost 40 mil combined.
It might be hard to ignore their wishes, and smaller shareholders could benefit by clinging to their coat tails.
I trust that Ramas will have to convert the pref shares to equity (or find another solution). No shareholder is going to subscribe if most of what is raised will have to eventually pay the $20 million to Ramas on redemption, which seems to be the current situation.
Hopefully, we'll know more in a couple of days.
FDM Price at posting:
1.1¢ Sentiment: None Disclosure: Held
