recapitalisation ?, page-7

Tanny, sorry not to have replied earlier. IMO best to not increase holdings when a recapitalisation is likely until the terms are known. The reason is that there probably will be a lead time between the announcement of an offer and the date the offer becomes effective, ie the date holdings become recognised for the offer to be issued. The offer then is made to unit holders at the ratio to their holding on the effective date. Between the two dates it is possible to change your holding to the number of units to qualify for the number you want to receive in the offer and probably by that time the ASX price of existing units will be at or below the offer issue price. You might find that it is not in your best interest to buy more units on the ASX as the ratio of the offer might result in your increasing your unit holding and averaging down at the same time without your purchasing any more units beforehand. You could avoid paying brokerage on the new units by purchasing via the offer instead of directly on the ASX. I hope this helps if there is an offer.