They are not free shares. This is a demerger. Part of the...

They are not free shares. This is a demerger. Part of the current business will be stripped out and form a new listed company (the Mobile applications business). For example, lets say the current company (company A) for arguments sake is worth 10 million, and the portion of the business which is being demerged is worth 5 million (company B), company A will now be worth 5 mil, and company B will be worth 5 mil. Shares in company B will be issued to existing shareholders accordingly (currently unknown how it will be done, this info will be released to market in the near future). At the same time, existing share holders will be entitled to subscribe for additional shares, also at terms currently unknown to the market.

As a result, company A's shares will be revalued accordingly

Cheers Greg