PP, always look forward to your comments.Mulpha's share of FKP...

PP, always look forward to your comments.

Mulpha's share of FKP severely restricts SGP's transactional inclinations. I'm not convinced that Mulpha would be happy to let the retirement assets go at anything less than a significant premium - and in this climate, it would be very hard to achieve a significant premium for anything!

Any deal would need to be a 3 way compromise that pleases all parties and right now, any probable offers would be way out of the FKP ballpark I'd guess.

SGP would want a cheaper entry than pre GFC, Mulpha would want a premium for their investment, while FKP- cashed up and looking to grow the business, would be unwilling to let their best asset and foundation of their business, go cheaply. From memory, 88% of their operating profit originates by way of recurring income now.

From SGP's releases, I gathered little evidence that there was any interest towards acquiring FKP or any part thereof, at this point of time- but like you said previously, that could be their intention to have focus elsewhere while they prepare a deal.

FKP makes the point that they intend growing the retirement segment organically and through acquisition, so re PTN, if it's viable, they would have considered it.

Re. your last point, SGP's intentions when they first took a stake were possibly to eventually acquire the whole retirement arm but even though now is as good a time as any to pounce with some offer, I think Mulpha will make it hard and so will the FKP board now that the pressure is off.

My summation is, the Chairman, whose interests lie with both FKP and Mulpha, is making a point that if anyone wants FKP or the retirement segment, then the offer needs to be good rather than to expect a bargain in these tough times, otherwise, FKP/Mulpha intend to keep focus on growing the business.