The special dividend will give a $.64 return per share by end November 2021. At $.80 SP this leaves $.16 to be covered by Artisan and the $35m cash left in the business. If you refer to Tables 8.6 and 8.7 in the BDO Report, Artisan when valued based on Silk (not 100% match but a good indicator) is somewhere between $62m-$75m according to BDO. If the Artisan business and retained $35m cash was placed on the market today as a separate transaction I expect the Board would get more than the $26m implied valuation in the SP at $.80. Then there is $75m in franking credits for those who can take advantage of the tax benefits in any future distribution of dividends. What is not to love about the VTG SP at $.80?
VTG Price at posting:
79.0¢ Sentiment: Buy Disclosure: Held
