Depends on what discount rate is applied today vs the discount rate applied at the time they purchased IDSB.
The impact can be illustrated below based on the given cashflow of 128k per month.
At 5% discount rate: $1,536,000 / 0.05 = $30.72 million At 6% discount rate: $1,536,000 / 0.06 = $25.6 million At 7% discount rate: $1,536,000 / 0.07 = $21.94 million At 8% discount rate: $1,536,000 / 0.08 = $19.2 million At 9% discount rate: $1,536,000 / 0.09 = $17.07 million At 10% discount rate: $1,536,000 / 0.10 = $15.36 million At 11% discount rate: $1,536,000 / 0.11 = $13.96 million At 12% discount rate: $1,536,000 / 0.12 = $12.8 million At 13% discount rate: $1,536,000 / 0.13 = $11.81 million At 14% discount rate: $1,536,000 / 0.14 = $10.97 million At 15% discount rate: $1,536,000 / 0.15 = $10.24 million
IOU paid 23.3 million AUD for 21% in IDSB. If it costs you 6 - 7% in financing to purchase the cashflow back, you have zero cashflow unless it continues to grow so it's not realistic. if your discount rate is 10 - 12 than it makes sense to take the 21% back which is where the general sentiment around the 12 to 15M mark is for the sale. But who knows only the people in the room.
OVT Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
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