RE: RE: RE: RE: RE: Agreement timetable You could read the management circular if you'd like to know the answer. In brief, all the OTM Petrobank options are being cancelled. They will issue new options (likely replacing the value of the OTM options) on new Petrobank. All ITM options must be exercised prior to the transaction completion.
The reason they are structuring the transaction this way is for tax purposes. Petrobank and Petrobakken amalgamate and distribute "New Petrobakken" shares, then spin off new petrobank. That way they are spinning off the company worth $1/sh instead of the company worth $12/sh - ie less tax payable (for US shareholders).
Doesn't affect Petrobakken ITM/OTM options.
I don't know why everything has to be a management conspiracy. From my perspective, John Wright and PBG/PBN management has been extremely shareholder friendly.
I only wish they had waited longer to do the spin-off and done a larger buyback of PBG/sale of PBN combo when the spread was negative - they were creating a lot of value for PBG shareholders. We shall see if PBN responds to the removal of a control block in the new year.