RE:RE:RE:RE:RE:At current share price, CGN $82M creates reverse dilutionNonsense! It is dilutive to NAV/share, which includes all assets (PLS,cash etc), think about what you are saying. Don't you agree that FCU before this deal would have had a NAV/share larger than say$1.50/share? Well add more shares at .85c/share then the NAV/share has to go down.
Greenday wrote: CanadianBuck - The CGN deal is not dilutive to NAV as you state. Cash is a constituent of NAV so when CGN paid more than the prevailing market price for FCU, the deal created shareholder value. Here's an unrealistic but simple example that might help you grasp the concept. If CGN had paid $1B for their 96M shares, then FCU would have had enough cash to distribute a divident to existing shareholders for more than the market value of their shares and fund company operations for several years all at the same time. So sorry, but the CGN deal is not dilutive to NAV - it's accretive.