Agree with your sentiments by 35 - being locked out of the CR is frustrating, especially when you consider the large size of the placement and the fact that an SPP is a tool specifically designed for leveling the outcome for retail holders. It's not outside the realms of possibility that they do a SPP down the track, although I wouldn't consider this likely.
The silence as to the profitability or otherwise of these acquisitions is also concerning. Given they won't complete until well into FY15, it's likely to be some time before we get a sense of how they are performing. Having said that, from a strategic perspective they make sense, and you can probably read from the fact that Macquarie (as selling shareholder in Vow and now participant in the placement) continues to increase its stake in YBR that these are good buys.
I do wonder what the shareholder approvals required at the August meeting will be - it's possible Macquarie will go over 20% and hence would need shareholder approval for that. At a minimum they will need approval for the Vow acquisition given YBR is acquiring an asset from a related party (Macquarie as >10% shareholding under listing rule 10.1.3)
Hopefully there will be some financial info on the acquisitions in support of the general meeting resolutions. They could also throw an SPP our way as an extra carrot, though I see it as unlikely!
YBR Price at posting:
74.5¢ Sentiment: Hold Disclosure: Held
