Ann: Letter to Shareholders - Entitlement & General Offer, page-10

My understanding:

You're paying $1.40 for $1.40 because the NTA of the new securities will be $1.40 at inception. Those funds will then be invested in a similar manner to PGF, but tracked as their own portfolio with its own NTA.

Dividends will depend on performance, as always, but they've put some clarity around the dividend policy.

At the seven-year mark, you can elect to have your money returned to you at its NTA value, or they'll automatically be converted to PGF shares using the ratio of the NTA's to work out the conversion.

Net result is no dilution for anybody.

It's almost like they're starting a "sub-LIC" - or you could view it as a new LIC that will roll into the existing one on a set date, assuming that not everybody redeems their shares for cash.