The demerger booklet says Dart's strategy is to raise new equity "as soon as practicable". It expects to seek about $75 million, partly by way of the institutional placement at the time of listing and partly by way of an additional capital raising, which is likely to involve a pro-rata entitlement offer ....
So the instos get their fill before listing, while we current AOE shareholders get our fill after listing. Depending on how they structure the entitlement this could work in our favour ...
Deloitte is setting a notional value of between $1 and $1.20 "per Dart share"
Given the current share price premium is only about 30c for half a Dart share, my guess is Arrow want to milk the instos prior to listing (at around $1 per Dart share) because they suspect Dart will list well below (60c) its "real" value of $1 to $1.20. Fair enough.
If Arrow structures the entitlement so that we get offered Dart shares at the same price as the instos (or lower) but after listing, we have the option of ignoring the entitlement and simply buying on market if Dart trades lower than the entitlement price. If Dart trades above the entitlement price, do the entitlement. This is probably a better deal for shareholders than the instos are getting.
A lot of assumptions here, the biggest one being that the directors will put the shareholders first, which, based on recent events is not guaranteed to say the least.
Anything I missed?
AOE Price at posting:
$4.99 Sentiment: Hold Disclosure: Held
