And it appears that trading on a deferred settlement basis (from 15 Jan 2010) will be allowed for the BCSCB units, unlike the suspension of BCSCA units:
In my view, there are compelling reasons for acquiring BCSCB units, including:
(1) Long-term view of Brisbane Airport Link is positive, based in part on investment information provided by responsible persons of the BrisConnections Management Company Limited such as recent Broker and Investor Forum Presentations, on which I and companies associated with me have relied:
(2) There are complex dynamics in play before the 29 Jan 2010 final instalment, including such scenarios as:
(a) the $1 call could be potentially met by a market re-evaluation of unit fundamentals (driven by the unique, scarce, highly valuable asset: the long-term 45 year toll road concession)
(b) a surplus could be realised at a Public Auction of the units to be held in or around March 2010
(c) the Brisbane Airport Link project is well placed for a Privatisation and re-issue to market
(d) Market Signals of BrisConnections Value:
(i) On 30 March 2009 Macquarie Group Limited purchased 1,429,332 (8.055%) BCSCA units on-market.
(ii) On 15 April 2009 it was announced on the ASX that Leighton Holdings had paid $4.5m for the 77,400,933 (19.84%) voting rights (only) of Australian Style Investments.
(iii) On 21 April 2009 Macquarie Group Limited offered BCSCA unitholders with up to 50,000 of holdings an opportunity to exit the register by 5pm 4 May 2009 without meeting $2 liabilities.
As well as relying on the public announcements of BrisConnections management as to the positive value of the BrisConnections Stapled units, I also rely on:
(A) the BrisCon Trust Constitutions, which among other things:
(a) state in article 4.9(a) that a Defaulted Unit (together with the defaulted Stapled Units) "shall" be sold by the Manager or its agent
(b) state in article 4.9(e) that the Manager "may" set a reserve price at auction as then set out in sub-articles 4.9(e)(a) and 4.9(e)(b)
(c) state in sub-article 4.9(e)(a) that the reserve price at auction will be at a price "not exceeding" the amount then set out in that sub-article 4.9(e)(a)
(B) the Underwriting Agreement, which among other things:
(a) states in article 5.7 that BrisCon "must" conduct a public auction of the Defaulted Units
(b) states under the articles of section 7 that the underwriters "must" pay to the BrisCon an amount equal to any Final Call shortfall on Defaulted Units (of the second call of the third and final instalment), even though such a payment is not actually a Loan in my view, and in any event Defaulted Units will be transferred by the Transfer Date to the underwriters on or around 29 July 2010
I, David Barrow, have been acquiring significant BCSCB units (although always less than 5% of units on issue) on and off-market since 7 May 2009 in the price range $0.001 to $1.000
The Julie Anne Barrow Charitable Trust, of which I am a director of the corporate trustee for this charity, now only holds 20 BrisConnections Stapled units -- whereas the unit holdings as at 29 April 2009 were 5,609,666.
BCS Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
