Orchid, you may be correct about 2 different offers, ..time will tell
But yes, many retail investors will be unable or unwilling to part with 3 X 6.7 cents or ~ 20 cents for each mdt unit they currently hold. The issue will be fully underwritten and any short-fsll will be taken up by the underwriters. So the full ~ $200 mill will be raised one way or another, either by way of extra shares in the initial offer or taking up any shortfall.
And as usual the little bloke will be screwed.
Here is how it works.
The nab will be 12 cents or better and the underwriters will finish buying that 12 cents for a little over half price.------ times---many many tens of millions of dollars !!! Then in a year or two, as the centres continue to be fully tenanted and rents increase, they will revalue the properties upwards to reflect their new value and the N.A.B. will no doubt go to > 20 cents. Its a no brainer Right now, MDT makes plenty of income to pay its interest on its loans, and with the extra $200 mill to reduce debt, rent to increase, and property values to rise from the depths...... it is a zero risk situation for the big boys to triple (or better) their investment in a few short years. ALL at the expense of the small retail investor, who right now is being sold out at half price or worse.
As I've posted earlier, I don't believe this is the best outcome for existing unit holders who are being sold out to the big end of town. I just wonder who the mdt directors are representing.
Here endeth the rant !
Bendigo
MDT Price at posting:
6.4¢ Sentiment: Hold Disclosure: Held
