Ok i'll have a go at this one.There is to be a $0.75c capital...

Ok i'll have a go at this one.

There is to be a $0.75c capital reduction in the value of FKP ie today $3.83 tomorrow $3.08.

Thus i guess the SPP being set at $3.08?

There is also to be a $0.25c special, fully franked dividend paid and $0.93c of the available $1.00 is to be used to buy the stapled share, the property trust and a $0.07c will be paid to the share holder.

Same as i said happened when DOT stapled all its entities. You dont get the extra bits for free you have to pay for them from some place. In the case of DOT a 7% reduction of the number of shares held. In the case of FKP a capital reduction.

But the bottom line is that the stapled entity should still be worth $3.83 as the reduction has been invested in the extra assett. It just depends if the market agrees.

DOT closed at $1.22 before the action, opened at $1.34 after and then fell back to $1.22. Today DRT the newley stapled DOT entity trades at $1.29.

I hope that helps a bit.

Regards

Stu