Thanks Hajji,Always appreciate feedback from the likes of...

Thanks Hajji,

Always appreciate feedback from the likes of yourself, Defab and others.

My question is...where is this 15c per share you refer to coming from?

We have lost 75%(guessing) of our income base following the sale of the US assets.

"Underlying Profit" for FY11 was $70M. This figure includes income from some of the unemcumbered US assets, no longer there for us. Even at a payout ratio of 100% this results in an approximate dividend of 3c per share. Comparing apples with apples (using payout ratio of 81.4% proposed for new company) this translates to a dividend of 2.4c per share. Take off 0.4c per share for the unemcumbered US assets (I'm only guessing here) gives us around 2c per share PER ANNUM under the current CER structure.

The new entity is proposing 12.4 cents per share (PER ANNUM). There's your 5 times multiplier..

Maybe I'm looking at this wrong but my maths is generally OK.

Happy to be proven incorrect. Perhaps a more detailed analysis from yourself or Defab.

Cheers.