There is no way he's going to redeem the SEVPC now. He's paying...

There is no way he's going to redeem the SEVPC now. He's paying much less than the debt would cost to refinance and he's using the proceeds to buy back shares selling at 0.4x book value.

Even once they step up it may be cheaper to keep them than to refinance or reduce gearing. In 2010 if the BBSW rate is 3% then add on 5% less franking then he's paying after tax 5.6% for debt. It is very likely he can beat that a few times over with equity investments from these levels. I would expect SEVPC to remain unredeemed for a good few years yet.

There is no way he's going to convert them, they'll be redeemed for cash eventually.