bbi share purchase plan 20% discount?, page-4

Steph, for what is it worth (and to get comments rolling!) I will be voting yes with my small BBI holding and yes with my BEPPA holding and participating in the SPP....although I did reduce my exposure to BEPPA previously to allow for the amount I would contribute in the SPP (because I think the SPP is less risky than holding the BEPPA) so that my total exposure to the new entity was a certain allocation of my portfolio that I was comfortable with...I do, however, have a relatively high risk tolerance (obviously!),

Now...time to put my head on the chopping block and try to summarise why I have decided to do this in as few words as possible....from a number crunching perspective (and my skills are admittedly not well developed so any further comments, etc are greatly appreciated....before I make my payment please!) I think that, based on the low range of valuations in the Grant Samuel report for the assets being retained by the recapitalised entity (i.e. no AEDT, no PD Ports, 50% DBCT) plus the recap cash to be retained and repayment of debt that there is about a 3% gain to the $1.785 value that BAM and the Instos are buying in at...as a possible worst case scenario. Using the Grant Samuel upper range of asset valuations that increases to a 22% gain. If these estimates prove to be correct, the lower range is hardly enough to make this exercise worthwhile, but I can't see that BAM and perhaps more importantly the Instos would be interested unless there was significantly more upside than that lower range. Also, the problems that plaqued BBI...debt and management...will be, IMO, effectively dealt with under the new structure so that we can get back to business. So from my point of view, the share price will at least have support at its issue price (not ideal; but not fatal) or have an upside that I want to participate in...but again my tolerance for risk is high.

As I mentioned before, I think participating in the SPP is safer than holding on to BEPPA....at least the money will be refunded if this proposal is voted down...who knows what will happen with the BEPPA price if the vote is no.

DYOR