re: garimpeiro's view in today's "age" Morning all,
Here's how "Garimpeiro", aka Barry Fitzgerald, of the Melbourne "Age" summed it up this morning.
I "like" the bit about no escrow.......
What a bloody joke.
Cheers,
Carl.
BTW, The above comment can be rightly criticized as a whinge.....I was holding on that fateful day.
Zinifex prepares for $1.35bn resurrection
By Barry FitzGerald
Resources Editor
March 2, 2004
Would-be investors were served up some surprises yesterday in the $1.35 billion rebirth of the failed zinc group Pasminco as Zinifex (pending ASX code ZFX).
Uppermost was the revelation in the prospectus that Pasminco's creditors - including the recently arrived hedge funds that bought discounted debt from original creditors, but excluding those creditors affiliated with the lead managers - can take up to 20 per cent of the float on a priority basis, and without restrictions on when they can sell.
That prompted Zinifex itself to warn that aftermarket trading of its new shares could be hit by post-float sales by the creditor shareholders - in other words an overhang will exist.
The creditors have paid a bigger price than they would have liked for the priority treatment in Zinifex, a leveraged play to movements in base metal prices and the Australian dollar. That payment comes in the form of the $900 million "haircut" they have taken on their $2.1 billion Pasminco exposure to get Zinifex up.
There will, nevertheless, be little sympathy for the big creditors, including the trading banks, among shareholders in the old Pasminco. They get nothing, not even a tax loss on their Pasminco excursion.
advertisement
advertisement
A more positive note was the revelation that there was an "intention" in the creation of Zinifex to quarantine it from environmental liabilities (except for statutory liabilities) for events occurring before September 2001, which is when Pasminco went into administration.
Environmental issues and litigation associated with Pasminco's decades-old zinc and lead mining and refining business were often cited as a long-term negative in valuations of the failed group.
Zinifex is to issue 500 million shares in an indicative price range of $2.10 a share ($1.05 billion) and $2.70 a share ($1.35 billion), with retail shareholders to get a 10¢ a share discount on the the final price, which will be set after a book-build with institutional investors.
Zinifex is trading profitably at present metals prices, says chief executive Greg Gailey.
Joint lead managers to the float are Citigroup, Deutsche Bank and UBS Investment Bank.
Funds raised from the float will be paid to Pasminco's creditors, who were owed $2.8 billion.
Chief executive Greg Gailey confirmed that Zinifex was trading profitably at present metal prices and argued that the group's key metal, zinc, was overdue for a price surge on supply/demand fundamentals.
- Forums
- ASX - By Stock
- banks vs shareholders
PAS
pasminco limited
re: garimpeiro's view in today's "age" Morning all,Here's how...
Featured News
Add PAS (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SBW
SHEKEL BRAINWEIGH LTD
Dani Nadri, Country Manager Australia
Dani Nadri
Country Manager Australia
SPONSORED BY The Market Online