Ann: HY23 Results Media Release, page-50

At the time of the MLT deal I had to establish a cost ratio and I tracked the arbitrage between SOL which had gone up way beyond fair value and MLT. At the time I established that a crossover value was around $28.50 for SOL based on the MLT price at the time deal was announced. So at $28.50 an MLT shareholder would have no implications. In reality the SOL share price within the deal was pegged at $31.00 There was a discount to NTA in the MLT share Price. The SOL share reached a high of $38.89 during the period of the announcement until it was concluded but quickly retraced its steps back to under the break even price I had worked out of $28.50 on 17 January 2022 it remained relatively near or under the price of $28.50 all the way to around 20 March 2023.

Purely my view based upon my own situation this date and after that has presented an opportunity to switch out of SOL into another LIC or ETF to lighten your concentration of BKW and SOL. I do not think that people understand just how many MLT shareholders there were that came across to SOL. Certainly there were more MLT shareholders than SOL shareholders last year at the SOL briefing meeting that I attended.

There were almost 30000 shareholders in MLT.

There were 56309 shareholders on 5 October 2021. There was 59844 in October 2022. However what that did not reflect 27 shareholder left who each owned a minimum of 100000. and the growth in shareholders was only in the category of 1 to 1000 shares. which had grown by roughly 4000 shareholders. In all the higher categories the number of shareholders had dropped.

So at the end of this research I can only claim anecdotal evidence that many of us had holdings in each of these entities and that the break point was around $28.50 and if you wanted to diversify it was more likely you would sell SOL before BKW because of the increase you would have gained as a MLT shareholder. I personally have found it hard not to sell any SOL given this merger as it has concentrated my portfolio.

On a personal level I am a bit uncomfortable with SOL selling the MLT portfolio as they have as they seem to be moving those funds into private businesses like interest based loans etc. It seems a huge premium to have purchased it at a premium to NTA then sell it pay a large amount of tax and end up with a lot less. I think this team was bailed out by the coal price and BKW making them have some very good years. Just at the right time.