Member Info for rockslide

You're not missing anything - it's a rotten deal for shareholders, apart from maybe the Alliance family. Thankfully the special resolutions on the agenda of the GM to be held on 23 Nov need the approval of 75% of shareholders, so there is still a chance that the placing could end up being binned.

Except it's not £100m going into the business it's £94m of which £77m will be used to pay down debt so positive to the balance sheet and the remaining to be spent on various initiatives. Nothing to do with the market cap. at all which is simply the value the market places on the business, incidentlally down over 1% so far today on a generally positive day for other stocks.

Yes it is a significant dilution. If the placing goes ahead and you don't either take up all of the offer shares or buy the equivalent number in the open market then you will own c. 38% less of BWNG than you did prior to the placing. As the chances of the placing not happening are slim at best, my view is that the market has already re-priced BWNG to account for the dilution.

This placing is a particularly bad deal for shareholders, as not only is the dilution significant but it is not sweetened in any conceivable way by the offer price @ 57p. Just one example of why it is bad: the future dividends that have now been hinted at will all have a haircut of 38% unless you take steps to undo the dilution to your holding.

Dilution calc: 11/18s of an offer share for each current share held, so each current share is the equivalent to 1.6111 (1 + 0.6111) future shares after the placing. 0.6111 is 37.93% of 1.6111.