- sale to the Government was at a reasonable premium to stated Fair Market Value being an even greater premium to book value
- Government probably paid an additional premium for size (which Duxton would have delivered)
- sale was for unleased entitlements (so revenue shouldn't be impacted)
- premium highlights where the Government bid is for upcoming tenders
- expect a special dividend and/or ongoing buyback
On my calculations, the sale (after tax provision) was accretive by >10-15% per share and that gives nothing for how much more the unsold entitlements have increased in value.
Even after today's bounce, stock still arguably trading at a +20% discount to NAV.
Uncorrelated returns make this a great stock to own.
IMO DYOR
D2O Price at posting:
$1.37 Sentiment: Buy Disclosure: Held
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