capital raising, page-96

kippax, Orica spun-out Dulux, and have out free shares in Dulux. Alchemia may not giveout free shares to this spin-off. From my reading, SI's will get options so they can buy into the new company at a 50% discount. Regular shareholders won't get this, so may have to buy shares in the new company- that you now already own.

There are two types of spin-offs- the good ones where holders get new free shares as a bonus (I got DLX shares, for example), and the ugly ones where a company sells you back your own assets. I find the latter type to be a disgrace. I hope that's not what ACL is planning. Sometimes, Directors also take seats on the new company Board, as they clearly know aout the new company, given it's really a piece of the old company. Double Director pay- woohoo!

Please correct me, anyone, if my reading of chinesewhisper's post seems off the mark.