pigs webinar, page-6

It might be a mirage, but you aren't issueing new shares for nothing. You are gaining $285mil in equity. More than our entire market cap. Whether the sp rises or falls will depend on how market values the assets and more importantly if the hybrids are paid out in full or take a haircut.

If they are paid out in full then no value is added to the shares. And, as you say most likely they will sell PPX shares quickly, maybe even ruthlessly (unless they want control?) and the sp will fall below the conversion price.

ie if it converts at 6c, they might happily sell at 5c. They would still return $83.

But let's say they agree for a 50% haircut. They accept an offer of $50. That is like converting $100 at 12c and the sp would logically rise. But is it fair?

Maybe one way to stick it up them (if PPX want to) is to announce conversion and rights issue simultaneously. By forcing conversion they get no say. Then by choosing the dates correctly, PXUPA cant vote down the rights issue as they aren't on the register by the cutoff date. Then dilute them.

So if PXUPA are proposing 78% let em have it, then just dilute them back to 50% or whatever range the company is happy with. And do it at a heavy discount to their conversion price.

Convert as per PXUPA prospectus, ie discounted vwap. Then rights issue at an even lower sp and they are excluded from vote and participation via the choice of cutoff date. Transfer their wealth to PPX.

But you would only play that dirty if they refused to negotiate imo.