This isn't a bond with a $1 par value that is trading at 60 cents. $1 is one scenario, based on everything going their way.
What about the lawsuit? Last I heard they were losing that? Is there an update?
The banks had required their setting aside larger reserves for bad loans. Australia's housing market is in a real bubble. If that crashes later this year those reserves are potentially impaired.
Finally, management isn't going to give most of that money back. That is clear from their rather rude behavior towards shareholders to date, and wishing otherwise won't make it so. Is there any reason to believe that the new venture would trade anywhere near book value, especially given it will be in a startup mode?
I could see them trading to 80 cents (80% of book) once they announce their intent on how to use the money. I am not sure that 65 cents against 80 discounts the very real risks.
RHG Price at posting:
63.5¢ Sentiment: None Disclosure: Not Held
