The hidden value in CIX is the significant amount of tax losses...

The hidden value in CIX is the significant amount of tax losses and franking credits they have.

The problem was how long would it take to etch out a profit prior to accessing these. This acquisition will see profit of $7-$8 million in the first year.

Tax credits will be accessible and CIX will now pay 13% of the normal tax rate under the combined entity.

Plenty to like about this, especially with AU becoming a substantial holder.

I expect to see CIX trade above 60c in the short term as a result.