Djingo, I understand the deal it is more than unfair it is wrong for the existing shareholders who do not participate. But not every shareholder can participate, and this makes deal purely in favour of the underwriter against existing shareholders who do not participate. In this sense its also coercive as the shareholders are not given any option its either lose everything or put up.
The deal could have been just as easily structured fairly amongst those who do not participate and those that do or can. Take the emeco deal as example, existing shareholders do that share wiped to zero. The deal is simply not fair, as the independent report stated. If it was fair we probably would not be in administration right now
MCS Price at posting:
2.5¢ Sentiment: None Disclosure: Held
