RE:RE:RE:WPX dual listing in HK?What Tairu agreed upon is that they keep at all time 51% of the company. They could dilute the stock for every investor to 0 but they will always keep 51%.
If the deal goes through, and I was them, I would never use debt as debt reduces their profit. Equity cost them nothing....they still keep 51% after each deal. Other investor on the other hand, lose big time.
Let's take an example :
They get the pilot going, it works, everything goes according to plan. They decide to ramp up production to full capacity. They sell a 40% stake in the company in order to secure the capital to ramp up production and make it actrative for investor.
At the end of that day :
Tairu will still hold 51%
New investor 40%
current base of investor 9% ( that is 100% of investors now )