If I was a rational noteholder, I know that I am entitled to my payout of $46M (US$35M) today.
For me to hold on (and not be paid regular interest repayments, and be therefore exposed to equity style risk), I would expect an equity style return - i.e. participation in any upside above $46M AUD
$46M AUD = $0.19c per share = 10.5 conversion
Without 10.5-1 conversion, why would any rational noteholder vote in favour of the resolution.
Under a US$100M sale share price would be AUD$142M / (240 + 23.75 x 10.5) = $0.30
(Noteholders would receive 23.75 x 10.5 x $0.30 = $74M AUD)
For equity style risk exposure, I will be very very very surprised if even 25% of noteholders vote in favour of the resolution....
This offer is a mockery of the whole risk / return trade-off
AZZ Price at posting:
50.0¢ Sentiment: None Disclosure: Held
