Prime WANT to spend the money - or they wouldnt have agreed to it
They get control, without the premium price needing to be paid - as takeover rules dont apply during a rights issue or underwriting
So for them its cheaper than doing it any other way, assuming they want control
My view is that its a good thing, as DES now has a big brother - who plays by the rules- and will bring value to DES in the short term.
Im sure that PRT has some "projects" that they will vend into DES once they have control (noting that they cant vote on these themselves if its a transfer of assets)
Think of Prime Digital Media and Prime Digital as two examples......
DES Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
