Buy a (notional) 100 SKE shares @ $1.655 = outlay of $165.50...

Buy a (notional) 100 SKE shares @ $1.655 = outlay of $165.50

Those 100 SKE will generate $35.71 (grossed up for franking credits) from the cash component of the deal.

LESS my assumption of the second half SKE grossed up dividend of $8.70 (based on 6c dividend)

Deriving a net cash component of $27.01 (grossed up) on the 100 SKE shares

The 100 SKE shares have cost a net ($165.50 less $27.01) = $138.49, for which the 100SKE shares will be swapped for 55 PRG shares

$138.49 divided by 55 = equals a cost of 2.52 for each PRG share - compared to $2.82 for PRG close today.

Would appreciate your thoughts on my reasoning