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I am a holder of PXUPA as well as PPX , KPool .

I purchased my hybrids when the price was around $10 not the issue price of $100 that some unfortunate holders did .

Personally I think PPX shares are the place to be , as those shares at least have voting power to change the board as occurred recently .

My view is , unfortunately , I think hybrid holders have little hope of getting $100 back .

Of course if PPX was capable of returning to the profits you inferred it could happen , but I cannot see that while the hybrids overhang the companies ability to spend money and grow again .

I really think the best chance is for PPX and PXUPA to become one .

I am hopeful that as Harry Boon inferred that somehow PPX can buy back the hybrids on market at the market price at that time , and cancel the ones it acquires .

At the same time the board actions a buy of the hybrids offer those hybrid holders that dont want the current cash price of the shares , but want to stay invested , offer a fair share swap that allows the $280m debt on the balance sheet to be cancelled .

If this was to happen and then PPX did return to profit, it could easily re finance its other debt on better terms and then all holders would be in a far better position to see a return to all holders receiving income through dividends , opposed to hybrid payments

I think however it is a bit of stalemate PPX wont pay income to the hybrids , as it simply cannot afford to , and thus discounting the trading value of the hybrids to where it is now , or , the hybrids as a total are unlikely to accept any offer they feel is low ball , even though the share price of that instrument is trading at $8 .

I said this a few months ago on this forum that I would love to see 100-125 shares in PPX offered to each 1 share in the hybrids .

That would leave PPX with around 1,000m shares on issue .

If the company did hold 3b revenue and return a 3% EBIT number you mentioned , attracting the 6 times EBIT number you mention then even 60c a share would be cheap and the hybrids would be closing in on their 100 dollars again .


Just my thoughts after many many wines tonight