....after writing down the jv, including a 20% reduction in...

....after writing down the jv, including a 20% reduction in assets and doing a 1 for 1 equity raising @ 60c GPT will be worth $1.30

If you take up the rights issue you will be buying shares at a 53% discount to the NTA

with a stronger balance sheet and a discount of the assets you can expect the NTA to close to actual value



please check out my calculations
v
v
v

the original NTA was $3.82

equity = $8.4 bn
no of shares = 2.2 bn
$8.4bn/2.2bn = $3.82


assets $14 bn
debts $5.6
equity $8.4

$2bn was leant to the jv

jv

assets $7 bn
debt $5 bn
equity $2bn

1. the JV has been written down to zero

you therefore have to knock off $2bn from the balance sheet

eg

assets $12bn
debts $5.6 bn
equity$6.4


2. next include 2O% reduction in assets

assets $10bn
debts $5.6bn
equity $4.4bn

3. finally include a 1 for 1 equity raising @ 60c

2bn shares x .60 = $1.3 bn

assets $11.3 bn
debts $5.6 bn
equity $5.7 bn

equity $5.7 bn
no of shares = 4.4 bn

nta = $1.30

gearing = 49.5%