centro properties group offers shareholders 5c

I have no idea!! Way to many pages of information to fully understand what it all means.
They mention 6% but no actual guidance for future Divis from what I could see.

Do our shares cross over at the same number we own now for the NTA of 41c?
Or do we lose some shares in the shake up? I dont think so but given the amount of information today I will need an accountant & lawyer to tell me what it all means in laymans terms.

Hoping Defab can help until then I continue to hold and I have a shedload of them.

Cheers
Hotlegs

Centro Properties Group offers shareholders 5c exit deal as part of $4bn merger plan Sarah Danckert From: The Australian August 10, 2011 12:00AM

CENTRO Properties Group has offered long-suffering shareholders a 5c per security exit deal as part of a plan to merge its solvent satellite funds with Centro Retail Group into a $4.4 billion megatrust.
The debt-laden group confirmed that an agreement on merger terms had been approved by 83 per cent of the group's senior lenders and associated Centro funds.

Centro chief executive Robert Tsensin said the agreement, which would staple securities in the funds to create one listed entity, was a major milestone in the restructure.

"After conducting a rigorous and independent assessment process, each party to the aggregation is of the view that aggregation represents the best outcome for their respective stakeholders," Mr Tsensin said.

Centro's senior lenders will hold 68 per cent equity in the new fund, but Mr Tsensin said no lender would have more than 13 per cent.

The new fund will hold stakes in Centro's $2.5bn syndicate business. It will also hold a suite of debt, $2.5bn of which is due to expire in December.

Centro Retail Group chairman Peter Day said the trust was in talks with local and overseas lenders to refinance that debt.

Mr Tsensin said the loan-to-valuation ratio of the new fund would be about 40 per cent and its gearing would be in the "low 40s".

Centro Properties has sold its property management arm into the merged structure for $200m.

The $49m package set aside for ordinary Centro shareholders is part of $100m reserved for junior stakeholders. Senior lenders have swapped billions in debt for equity in the new trust.

Convertible bond investors will receive 5c in the dollar, or about $21m in total, in the carve-up of the $100m, while $20m is retained for hybrid noteholders and $10m for contingent creditors.

The merger depends on junior stakeholders, particularly in Centro Properties and Centro Retail, approving it. There are also regulatory and legal provisos.

Shareholders will vote on the merger in October.

Mr Tsensin warned that Centro Properties would probably enter administration if the deal was voted down, while Centro Retail would still pursue a merger of the remaining funds.
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