Then what happens to the people (like KZAP) that sold CSMA after the X dividend date, and are entitled to the spin-offs. If the spin-offs go back to CSMA what does KZAP have?
Please keep in mind that the following is a response to a hypothetical situation. Moreover, I am a totally neutral observer who no longer owns CSMA or AdHatters/Envirotec restricted shares.
He would get some number of NEW CSMA shares that would have to be issued if everything were to be put back together. Something akin to undoing the spinoff of 1 for 6 for Envirotec and 1 for 7 for AdHatters. For example, if 6 shares of AdHatters are assumed to be worth what 7 shares of Envirotec are worth, and the two of them represent 95% of the company(illustrative example only) then a re-unification might look something like this:
4200 shares of CSMA shell would become 50 shares of NEW CSMA (5.0%)
600 shares of AdHatters would become 475 shares of NEW CSMA (47.5%)
700 shares of Envirotec would become 475 shares of NEW CSMA (47.5%)
So, someone who bought 4200 shares of CSMA way back when, and dumped them recently, but still retained their AdHatters and Envirotec restricted shares, would still own a sizeable number (95% in this example) of shares if, repeat if, some type of re-unification occurred.
There is no way that a CSMA shell holder who bought recently should be entitled to the same share of the new CSMA as a restricted share holder who bought way back at much higher prices...no way.
Take a cherry pie, give the cherries(adhatters) and give the soft flaky crust(envirotec) to a group of people.
Now, a bunch of those who have the cherries and the flaky crust discard their portion of the pie tray to others. So, now some people have cherries and crust, some have cherries and crust and pie tray, and a few have pie tray only.
If you then try and put it all back together again, those who have cherries and crust(but no pie tray) aren't going to be too happy to find that they will have to give up the cherries and crust, right?
And certainly those who only bought some of the pie tray shouldn't get the cherries and crust that occupied that portion of the tray, right? |
