Not sure I understand all the excitement. They have sold at an...

Not sure I understand all the excitement. They have sold at an overvalue price but the net proceeds are only 73%, so 27% of the deal is going to pay taxes that is a reflection of what they paid for those SOL shares I presume so they net after-tax around$19.49 per share. That is below my models' fair value for SOL of around $22.00.

Really the only thing it does is to reduce debt for the USA - That's a huge play. The next question is would it not have been better to sell some new BKW shares rather as they would have avoided the 27% tax burden.

It begs the question of whether they are saying that even at the net level SOL is overvalued then so would BKW in my model.

Really this group at times frustrates me - When Perpetual was having a full go they defended the cross holding and never said that it could be lowered. Now they have just indicated to the market that BKW may well not be a partial proxy for holding SOL.

Personally, I would have preferred they raised the $115 million via a share issue...

The market will catch up on mispriced processes over time.

A rights issue @$15.50 would have been better