- Joined
- 2 June 2011
- Posts
- 5,341
- Reactions
- 242
Looks like the market has looked through the smoke and mirrors and assessed that the deal favours the WDC share holders at the expense of the WRT share holders. Apart from the 82 shares (1000 WRT to 918 Scentre) that WRT holders will receive $285 for (which is the only shares that they receive the equivalent nta value of $3.47 for) by my calculations the WRT share holders will be much worse off.
For their 1000 shares with an nta of $3.47 ($3,470.00) they are going to receive 918 shares with an nta of $2.81 ($2,810.00) and a kick along of $285.00.
$3,470.00
($2,810.00)
($ 285.00)
$ 375.00 Shortfall ?
Even if you were to allow for the two (2) distributions 2H 2013 & 1H 2014 of roughly $0.20 ($200.00 per 1,000 shares) which you shouldn't have too, WRT share holders are still $175.00 worse off under this deal? As I type WRT has fallen back to $3.01-$3.02 after bouncing off $3.00 an increase of half of one percent on yesterdays close, WDC is up $0.395 or 3.81 percent on yesterdays close.
How can the "independent" directors support this?
Is NTA the best way of valuing the merits of the bid? Because the dynamics of Scentre will be very different to a straight up REIT. I'm asking because I don't really know the answer to the question. I've only read what's in the paper.