is a take over close?, page-10

W534220,

NTA or net tangible asset is the value of the quantifiable physical assets of the company including property, plant,equipment etc.

Book value incorporates NTA plus it adds intangibles i.e. goodwill, market brand awareness, software, existing contracts etc.

So, If elders is able to sell futuris close to its book value of $220 million, this means that elders has got some monetary value for its intangibles thus realizing this value in cash meaning the NTA would rise to meet this sale price.

At the half yearly report, book value per share was $1.10 and NTA was 62 cents so there is a 48 cents difference or intangibles factor for the whole company.

In terms of the forestry assets, it was explained to me that because of the complexity of the existing contracts, it would beneficial not to sell until final qtr of 2012 calender year.