OBS eyes sharply higher bid val., page-19

Lash,

No or very little tax will be payable. DGT has OBS in the books at 31c so a bid of 80c would equate to a profit of $17.9m. Vs accumulated losses of $15m which will only grow this year.

I don't want to burst anyone's valuation model but DGR only have 36.535m OBS, not 39m as many here assume. They sold just under 1% (2.465m) at 38c on 8 August in an off-market transaction (see page 19 of the accounts).

BLOG: I too am pondering what should happen to the cash. I think that at least 50% should be returned via a 4.0c unfranked dividend/capital return. I'd hate to see NM just stash all the cash to winterise his $4-6m/year empire. As we know with this stock, the DGR market rarely values any of the investments greater than 30% of face value and I would be very much surprised if the market gave anything more than 75% for any cash held by DGR.

So much better back in our pockets.

Cheer