check mdt company news , page-20

Lets see if I've got the figures approximately correct.

(For simplicity Ive rounded them off in a very much "back of the envelope calculation", but this should give us a ballpark figure )

As announced:

Under the Placement, MDT has issued to EPN 141.48 million new units at a price of A$0.067 per unit and A$9.5 million.

They intend raising another $200 mill.

If we assume they are issued at the same price, they need to issue a further
200/9.5 X 141.5 = approx 3000 MILLION units !!!!
This is more than 3 NEW unit for every existing unit.

Or simply put, to come up with another ~20 cents for every existing unit.

( I doubt if many existing holders will want to do this)



PRE any of this, the N.A.B. after severe write-downs was (say) 30 cents with ~950 mill units issued
So total net asset value = .3 X 950....... approx $285 mill (Call it $300 mill)

Now add ~ $200 mill for all the capital raising ( 200 + 9.5 less expenses)

WE now have Existing units ~950 mill, plus ones just issued 141.5 mill, plus units to be issued 3000 mill
(950+ 140+ 3000)
Total units on issue would then be rounded off to say 4100 mill !!!!

Value of assets existing $300 mill( as above ) then add $200 mill raised.

Let's say $500 Mill total NET assets


SO.... THE BOTTOM LINE....

NET ASSETS/unit

500/4100 = somewhere around 12cents/ unit

Two ways of looking at this I suppose.

1/
The company has survived, and should be looked upon as financially stable.
Thish should reflect in a higher unit price than before the trading halt.

2/
With a previous NAB of > 30 cents per unit and things looking up in the US anyway, this was probably BELOW what the properties are currently worth.
It would have been better to conduct an orderly sale and wind up the trust......... with probably better than 30 Cents/unit being returned to holders.

...............................................
I bought my holding with the original > 30 cents N.A.B in mind, and was hoping to get somewhere around that price "down the track"

Conclusion:

If this deal proceeds,I will still make money but I do not thinks it is anywhere near the best outcome for existing unit holders !
(I realise than many holders will still be under water on their original entry price.)

As usual, the big end of town has screwed the ordinary investors.

Do we get to vote on this, because I don't see it as being in our best interests ?

(PLEASE... feel free to pick any holes in my calculations)

Caveat emptor.

Bendigo