How to calculate dilution for additional shares being offered?

Trying to calculate dilution for Pacific Gas & Electric's equity offering to wildfire victims which will be upcoming, I don't work in finance (actually engineer by training). The documents state fire victims will get no less than 21% of the company (minimum which is guaranteed), raise about ~$7 billion for them (precise guaranteed amount), and there will be an equity with an implied P/E multiple of at least 12. I'm reading the court documents and it sounds like the per share price would be based on the P/E multiple of at least 12. When I look up when the P/E was 12, the share price was around ~$40/share.

Right now the market cap is $8-9 billion at $16/share. In trying to calculate the dilution scenario, it sounds like it they raise $7 billion at $40/share is 175 million shares. Current PG&E shares outstanding is about 525 million. So after dilution there will be 700 million shares (25% ownership). So does that a share price of $30/share (based on the P/E ratio of 12?) or current share price of $12/share? If raising nearing as much as the current market cap, I would think that would sink the share price 50%?