Sabana placement - updated!

I am disappointed with the selfish placement, they should have done a rights issue at $1, i will definitely subscript to it.

Below is what I posted at VB forum:

Did a quick calculation.

I use the lower 2.7 million increase in distribution due to acquisition. (Refer to earlier post 274). I use the lower estimated figure.

I account for the acquisition fees of 670k already, performance fees, they are not going to get it as my final calculation of DPU after dilution is 9.5 cents. (As compared to 9.6 cents now, without acquisition.)

So net net, given I cannot participate in this discount YET, (I think market will punish this counter), we are worse off with this deal.

But then, at 1.080, yield will will be 8.7%.

So I willl keep my cool, let the price drop further and accumulate after the placements unit come into play.

At $1, yield will be 9%.

Ok, not sure angry now. BUt what the F***, issue rights la, whats the rush!!

Other numbers:
They are still 27 million short for their acquisition, they do not have 27 m in cash, so most prob still need 20 m loans. But it does not make a big difference to gearing, its within 1% point.

NOTE: Income for distribution increase is from my conservative estimates only. IF they champion and buy a property that is more than 10% vacant, then the figures will be wrong.

I just note that the AMD building is half vacant! So my figures are all wrong, dilution effect will result in 9 cents DPU annually, versus the 9.6 cents now...

I have send an email to management asking some questions, will posted it here if I get a reply