Okay - Imagine a company you hold does a consolidation. 5:1 or 500:1, doesn't matter, no problem, right? Your share of the co stays the same and therefore so does the value of your holding.
Now imagine they say that only the retail investors will have their shares consolidated. Institutional investors get to keep their original amounts. Would you say that is fair too? Of course not. Your share of the company has decreased and so has your claim on the company's profits, while the institutional investors have gained more share of the profits and payed absolutely nothing for them.
This is the situation with Odin Energy and gridComm. gridComm holders are not having their shares consolidated, but ODN holders are. The more the consolidation of ODN shares, the less share of gridComm profits ODN holders are entitled to - and the more p'd off ODN holders are going to get.
The details of the deal are all under wraps and ODN holders will have no choice but to accept them once they are revealed. Doesn't sound like a recipe for success to me, wouldn't want to be the one caught holding the ball when the news comes out.
