BSL - Bluescope Steel

captluthra · 6 May 2009

Re: BSL - Bluescope Steel - 1 for 1 offer

skc said:
Typically the Ex date is 3 days before the record date. This is the same as in dividends. So I actually didn't think shares purchased on open tomorrow will be entitled to the rights. I could be wrong of course...

As per the info available the ex date is 7PM on Friday ie 08/05/2009...How do u think its going to impact the price on thursday and friday.....

Skip1jz · 6 May 2009

My understanding reading the print at the end of the offer document is you will only be entitled to the offer if you held the shares before the trading halt.

skc · 6 May 2009

Re: BSL - Bluescope Steel - 1 for 1 offer

captluthra said:
As per the info available the ex date is 7PM on Friday ie 08/05/2009...How do u think its going to impact the price on thursday and friday.....

Where do you see the ex date bing 8 May? Note difference between Ex date and record date.

As stated before, ex-date typically 3 days prior to record date. I guess to allow for ASX settlement / processes etc.

As to impact - already analysed above. Simple put the first traded price is likely to actually be the ex-entitlement price, which some believe to be in the area of $2.

captluthra · 6 May 2009

Re: BSL - Bluescope Steel - 1 for 1 offer

skc said:
Where do you see the ex date bing 8 May? Note difference between Ex date and record date.

As stated before, ex-date typically 3 days prior to record date. I guess to allow for ASX settlement / processes etc.

As to impact - already analysed above. Simple put the first traded price is likely to actually be the ex-entitlement price, which some believe to be in the area of $2.

Record date as per the prospectus is 1900 hrs 08 May 2009....Now the record date is established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution. So I am making the assumption on the definition above.

oldblue · 6 May 2009

Re: BSL - Bluescope Steel - 1 for 1 offer

captluthra said:
Record date as per the prospectus is 1900 hrs 08 May 2009....Now the record date is established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution. So I am making the assumption on the definition above.

Any shares purchased tomorrow won't be settled for until Tuesday 12 May ( T+3).
Entitlements will be calculated by the registry as at their records of 8 May.
My pick is that the shares trade " ex entitlement" tomorrow.

ozbecool · 6 May 2009

BSL - Bluescope Steel - offer entitlement date

There is a possibility that it is as you guys say (i.e. that the entitlement is similar to the "EX-DIV vs DIV RECORD DATE"). OST offer was clear about this. So I emailed BSL today and when I get the answer I will post it here ASAP.

If tomorrow BSL is to trade "ex-entitlement" then my guess for the average day price is $1.95 ... $2.05. Low institutional offer coverage (to be known by tomorrow morning) would move the price up I guess.

ozbecool · 6 May 2009

Re: BSL - Bluescope Steel - offer entitlement date

I have just received an answer from BSL - quote:
<< If someone buys stock tomorrow may 7 then they would not be eligible to participate. >>

I hope that the above info will prove quite valuable for all people thinking of buying in order to be able "to participate" in the offer.

The above answer from BSL office also confirms that, in regards to entitlement date, BSL offer is identical to Apr 2009 OST offer : i.e. that to be eligible you must have purchased the stock before the trading halt. .

captluthra · 7 May 2009

Re: BSL - Bluescope Steel - offer entitlement date

ozbecool said:
I have just received an answer from BSL - quote:
<< If someone buys stock tomorrow may 7 then they would not be eligible to participate. >>

I hope that the above info will prove quite valuable for all people thinking of buying in order to be able "to participate" in the offer.

The above answer from BSL office also confirms that, in regards to entitlement date, BSL offer is identical to Apr 2009 OST offer : i.e. that to be eligible you must have purchased the stock before the trading halt. .

So would that mean I can sell my stocks today and still be eligible to get 1 for 1, just because I held them at the time of halt

oldblue · 7 May 2009

Re: BSL - Bluescope Steel - offer entitlement date

captluthra said:
So would that mean I can sell my stocks today and still be eligible to get 1 for 1, just because I held them at the time of halt

Correct.
And judging from the volume traded so far today, there's been a fair bit of that going on.

captluthra · 7 May 2009

Re: BSL - Bluescope Steel - offer entitlement date

ozbecool said:
I have just received an answer from BSL - quote:
<< If someone buys stock tomorrow may 7 then they would not be eligible to participate. >>

I hope that the above info will prove quite valuable for all people thinking of buying in order to be able "to participate" in the offer.

The above answer from BSL office also confirms that, in regards to entitlement date, BSL offer is identical to Apr 2009 OST offer : i.e. that to be eligible you must have purchased the stock before the trading halt. .

What do you make out of the stock trading at $2.25....beats me...we were expecting 1.96-2.06??? Is is going to rise further or fall from here...I called the bluescope about the record date clarification...and they had no clear answer....

oldblue · 7 May 2009

captluthra said:
Is is going to rise further or fall from here...

That's for the market to determine.
Depends on market conditions generally and BSL specific issues. Interesting to note, though, that several companies that have made heavily discounted issues in the recent past have seen a gradual, moderate increase in their SP once the dust has settled and their financing becomes secured, eg TSE, FBU, NPX etc.

ozbecool · 7 May 2009

BSL - Bluescope Steel - offer entitlement date

RE: I called the bluescope about the record date clarification...and they had no clear answer
I also called them just now (10:30 Sydney time) (ph # : 1300-855-998) and I asked two questions re two hypothetical situations (Q stands for QUESTION, A stands for ANSWER):

HS1:
my Q: If I have no BSL shares today (7May) and I buy some now and then hold them till at least next week - would I be eligible for the 1-1 offer ?
BSL A: No - you would NOT be eligible because it will take 3 trading days (standard 3T+ trading arrangements on ASX) for you to become the BSL shareholder 'on records'

HS2:
my Q: If I already have BSL shares (bought long time ago) and sell all of them today (7May) - would I be eligible for the 1-1 offer ?
BSL A: No - you would NOT be eligible because you will not be on the share register on 8 May , 7pm

So I asked BSL another question - re (HS2) above :
my Q: why the 3T+ is not being applied to the SELL situation and it is applied to BUY situation ?
BSL A: you have to talk to your broker to get the answer to that !!!

Can you believe this ? And that was the answer from their phone SUPPORT line established to help people with this 1-1 offer !!!

So effectively my interpretation of the current situation is this :
7/8 May are the days 'in vein' - i.e. :
- if you own shares you have to hold on to them if you want to be eligible for the 1-1 offer
- if you don't own any BSL shares now then don't bother buying this week because you will probably pay more than you would next week. And there is no way you might become eligible for the offer anyway.

and the current BSL $2.20 price mark is coming from misinformation regarding the above. I bet price will settle at or below $2.05

ozbecool · 7 May 2009

Re: BSL - Bluescope Steel - offer entitlement date

Dear OLDBLUE - re your post @10:20 today:
Your answer is INCORRECT - see my today's prev post @10:59 for more details. Or call BSL on 1300-855-998 and find out yourself.

This whole situation is crazy - they should have clearly stated something like this: if you buy and hold shares by the end of 8 May 09 then you are eligible - full stop - no matter what the 'record' date would be

johannlo · 7 May 2009

If you're a holder, how do you actually exercise your options e.g. is some paperwork coming in the mail?

Gamblor · 7 May 2009

I'm new to all this but there is no way I would be buying at the current price - they've basically just halved the value through this raising have they not?

I don't know much about the share market but I wouldn't be interested until well under 2.00

oldblue · 7 May 2009

Re: BSL - Bluescope Steel - offer entitlement date

ozbecool said:
Dear OLDBLUE - re your post @10:20 today:
Your answer is INCORRECT - see my today's prev post @10:59 for more details. Or call BSL on 1300-855-998 and find out yourself.

This whole situation is crazy - they should have clearly stated something like this: if you buy and hold shares by the end of 8 May 09 then you are eligible - full stop - no matter what the 'record' date would be

No need to get all coloured!

The shares are being traded "ex entitlement" today.
This means that the buyer doesn't get the entitlement, the seller does because settlement doesn't take place until 12 May. In the meantime, the seller is "on record" as the holder of the shares.
Anyone contemplating selling should, of course, check with their broker.

oldblue · 7 May 2009

johannlo said:
If you're a holder, how do you actually exercise your options e.g. is some paperwork coming in the mail?

Yes.

It's not strictly "options" but a non-renounceable entitlement.
Amounts to about the same thing though.

johannlo · 7 May 2009

Thanks

Also re: Gamblor, no the price shouldn't halve, the back-of-envelope estimate is more like

(Price before announcement + price at offer) /2 = (2.57+1.55)/2 = ~2

So for us holders we're being blackmailed into doubling down

oldblue · 7 May 2009

So for us holders we're being blackmailed into doubling down. QUOTE.

That's pretty much it!

If you don't take up the issue you're going to be heavily diluted so there's a big incentive to take up the shares.

While noting the theoretical price ( say, $2-06) I wouldn't place too much reliance on this working out in practice, as today's trading shows.

alphaman · 7 May 2009

Normall you can sell today, but it probably doesn't hurt to wait after May 8. This bear rally looks invincible right now.

Interesting that BSL decided to underwrite the retail offer too. More desperate than I thought.

BSL - Bluescope Steel

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