Can we conclude that a failure of this motion results in the PPT closing down? What I take from the contract is that this basically renders PPT.DIV shares worthless, seems like an easy decision?
Actually no, that doesn't happen so easily. The way the business is set up doesn't allow it to be shut down like that, and it's not an "easy" decision. However, we also need to protect the value of the business and return acceptable returns to the PPT.DIV holders. Obviously making a perpetual loss renders the DIV shares worthless, but we're aiming not to incur losses with the change in payable interest rates. This was well signalled even as early as the very first PPT.A issue - if the rates change, so do the payoffs. Because we have voting shares with PPT.DIV, the motion is required to be put.
Thanks, I generally support the motion but am a little concerned that increasing the price could see the market look elsewhere.