The only reporting I have seen is to do with the on sale of Vic poker machine licenses. I think in one of the sales recently the average price was 27,500 per machine for a 10yr license.
Now from what I understand the agreement allows for a payment should the government grant the license to someone else. The payment is based on a value or the price at which the license was transferred. (All of this is through internet research so I am really unsure, please DYOR)
If this was correct and we assume the transfer of 13,750 machine licenses at $27,500 per license, we get $378 mil. If we add to that the value of the machines at (guess) 5,000 per machine we get another $69 mil circa. Therefore the co could be looking at receiving circa $447m. Even if you reduce this figure by 10/20% its still quite a capital injection. Great position to pay down a big chunk of debt or maybe make further accretive acquisitions?
All of the above is some loose assumption based on some internet searches, however it could explain the recent share price increase?
TTS Price at posting:
$2.69 Sentiment: None Disclosure: Held
