PXU paperlinx sps trust

Post conversion at 545 SRS per PXU, Equity per SRS is worth...

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DONACO88

4,427 Posts.

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30/03/17

11:55

Post #: 23735784
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Originally posted by Value_Hunter ↑

what would any PXUPA holders think of a cash and script deal ?

say around:

1. $5 per PXUPA
2. plus 550 - 600 SRS shares

$18.50 - $20.00 per unit

the reason for prompting:

1. I cant see any logical reason why the large pxupa holders would be willing to swap for SRS .......
2. SRS management appear to have realised that without access to additional capital - growing their business is going to be both very hard work, and very slow going
3. without some sort of capital restructure - both classes of security's will have approx. zero market interest .......regardless of the outlook for the actual business
4. even if the business stabilises - there is little chance that it will generate suffiecent retruns to pay the distributions on pxupa units...

rgds
Value_Hunter

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Post conversion at 545 SRS per PXU,

Equity per SRS is worth around 6.7 cents. NTA per share is worth around 5.3 cents per share.

If the market is rational, and it should be. Since the company is actually profitable.

PXU value post conversion equate to around $28, rather than current market price of $14

I will be voting yes for the conversion. Better to take a massive haircut now and get some money back, rather than wait and maybe get nothing if the industry continue to decline going forward.

PXU Price at posting: 0.0¢ Sentiment: Buy Disclosure: Held
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