Seven Group (ASX: SVW) today launched an offer to holders of Seven Group TELYS4 (ASX: SVWPA) preference shares to redeem and/or convert their units. The Conversion Proposal allows holders to convert their holdings at an 15% premium to market value and receive 4.60645 ordinary shares for each TELYS4. The conversion ratio has been calculated as the ratio required to deliver $92.50 of value for each TELYS4 held, based on the 30-day volume average weighted price (VWAP) of ordinary SVW shares.
If the vote is passed, shareholders will also be given the option to sell up to 50% of TELYS4 ($248.2 million collectively) for cash at $88.00 per share (8.5% premium to market value). This will be undertaken as a on market buy-back on the 28th of September 2018. The partial cash offer is subject to TELYS4 unitholder approval via a Resolution. If the Resolution vote is not passed, unitholders will still have the option to convert their TELYS4 holdings at the specified conversion ratio without the partial cash option. As part of the proposal, TELYS4 investors will forgo the scheduled dividend of $2.3264 per unit which was payable on the 30th of November 2018.