SRS 0.00% 7.1¢ spicers limited

interesting

  1. 462 Posts.
    Just noticed some interesting comments in the 2nd Bidder Statement regarding "Benefits" of conversion, including:


    2.5 Enhanced terms of trade for PaperlinX stemming from increased confidence among key stakeholders, which may improve business prospects The uncertainty and complexity resulting from having the PaperlinX SPS Units on issue,
    combined with the current trading performance of PaperlinX, typically leads to a more negative counterparty / credit assessment of PaperlinX by key stakeholders, including customers, suppliers, employees and financiers. A material reduction or removal of PaperlinX SPS Units may lead to an improvement in the Company's terms of trade and relationship with its stakeholders and thereby its turnaround initiatives (which PaperlinX SPS Unitholders other than Ineligible Foreign Unitholders would benefit from in accepting the Offer).

    2.6 Enhanced access to capital for PaperlinX to accelerate turnaround initiatives PaperlinX continually assesses strategic and operational initiatives, including bolt-on
    acquisitions and further significant cost base restructuring, some of which require additional capital. The removal or reduction of PaperlinX SPS Units may improve the Company's access to additional debt and equity capital to pursue these initiatives.

    Assessment...

    All seem to point to if PPX get rid of the SPS it will improve terms of trade and enable PPX to move forward on initiatives.

    This makes sense to me but for the deal to get done PPX (IMHO) need to provide a far better inducement to SPS holders to get the deal done.

    Wishing everyone a great Festive Season and lets hope this is resolved in 2014 for the benefit of all.


 
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