Firsova - PaperlinX have not tried to be fair. They've tried to...

Firsova - PaperlinX have not tried to be fair. They've tried to be smart.

"Fair" is when you get general agreement that the offer reflects the net present value of the hybrid securities. Neither the hybrid holders nor the RE think it's anywhere close to being fair.

And what's with this mindset that offering 50% plus of a company to one set of stakeholders is somehow "fair"? Surely the fairness depends on:

(i) The SENIORITY of those stakeholders;

(ii) The amount ORIGINALLY contributed towards the hybrids (the rights of which are transferred to subsequent holders who purchased them, rendering the price they paid for them on the secondary market irrelevant)

(iii) In the case of a share swap, the RELATIVE values (not Mr. Market inefficient prices) of their respective underlying equity. And if you think the market for PaperlinX's two classes of security is "efficient", you might like to explain the manic-depressive thinking behind the RE's recent series of valuations.

Finally, how does issuing 50% plus of the company to the hybrid holders give them "control"? Given they're receiving ordinary shares, they now become ordinary shareholders. Their interests now become aligned with all other ordinary shareholders, so there is absolutely no reason and therefore no likelihood for any, let alone all, former hybrid holders acting as a 'bloc' going forward.