Ann: DUET Entitlement Offer, page-17

EDL's franking is all over the place, from as low as 34% to as high as 100%. This is, in part, because it has operations in Australia, United States, United Kingdom and Greece. The mix in revenues will dictate how much franking is attributed to their divvy. Once its in the DUE stable the credits will be diluted, of course.

However, the bigger issue is that DUE operates as a managed investment scheme under a stapled security structure wherein profits are distributed pre-tax, meaning there are no franking credits attached.

It may be that any franking credits flowing from the EDL acquisition business will actually flow to DUE to be "converted back" to unfranked income and distributed to investors. That is, DUE may claim the franking credits and add the lot to their profit number (ie, grossed up) to, in turn, pass on the gross amount to investors unfranked.

Complicated? I am NOT a tax advisor, so please form your own view or get tax advice from a professional!

D day for close of offer is this Monday, so your mind needs to be made up soon!

Good luck