At this stage, the jury is out, but on first glance, i dont like...

At this stage, the jury is out, but on first glance, i dont like it.

Think about what is happening here.

FCP are taking 75% of OCO. It reads that this will not be purchasing 75% of OCO's stock, but issuing shares so that post placement FCP will own 75% of the total SOI.

That would mean a placement of 900m OCO shares (300% of the now 300m SOI.. excuse the rough maths).

So why would OCO agree to it?

Well management at the moment have a large stake of a small pie (the BilltoBill pie). They are swapping this for a smaller stake of what will be a much larger pie.

This is a really good way for FCP to buy their first China asset.. BilltoBill, and get a listed ASX entity along with it.

Then, at some time in the future, they will raise $100m-200m to expand into other areas in China.. hotels, leisure etc..

OCO (sorry, "FCPB Investments Limited") will in effect become a listed investment company, with Billtobill as their initial asset and cash to go out and buy more.

The fact is that no price has been suggested for the placement, and its in FCP's interest to have this as LOW as possible.
Remember, FCP are going to recieve 300% of the current OCO SOI, so they would want to spend as little as possible (even though the money then goes to OCO's bank account, which they, as 75% holder, will control).

Bottom line is, it will be interesting to see what the directors and FCP do to prove to shareholders that being part of a listed investment vehicle with these guys behind it is in the best interests of OCO shareholders..

Sorry for the ramble..