For instance dart has no debt, and the likelihood of a dilutive...

For instance dart has no debt, and the likelihood of a dilutive equity raise is small.

Igas has over gbp80 of net debt versus gbp270m of market cap and is alot riskier. If they were to degear today the dilution would be 30%.

If the balance sheets are equal the swap looks alot less attractive as we own a much smaller % of the unlevered merged entity.

Igas is using its share price (equity) to help unlever its balance with our 40 odd mill of net cash...

Operationally the deal is good, but financial risk too high. I dont want to be diluted out by equity raises to reitre igas debt down the track.