Allco will undertake the following measures to enhance investor returns: • rebate $1.9m per annum in management fees for the next two years ending 30 November 2009 (equal to the total management fees earned by Allco in the 2007 financial year); • waive its right to receive distributions on the 10 million Max units Allco owns for the next two years ending 30 November 2009 (Allco received distributions from Max totalling $523,000 in the 2007 financial year); and • continue to review and refine the Max operating model.
For illustrative purposes, in terms of quantifying the impact of these measures to Max unitholders, the quarterly distribution as at September 2007 of 1.05 cents per unit would have been approximately 1.40 cents per unit (representing a 9.7% distribution yield based on Max’s closing price on Friday 30 November 2007 of $0.58 per unit).
AXQ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
