No sane CD3 holder will vote this deal up.- Current mkt cap $102m,
- Post vote down = Imminent distribution of up to say A$0.29 / unit
- vs the alternative already discussed
- Negative feedback will be flying at the RE, I wouldn't be surprised if the proposal is withdrawn ahead of a vote
- It has been a great opportunity to get some visibility of how the portfolio has performed through recent mkt vol, ie very well (see table below)
- Note below, fund has $28.6mil cash interest in the LP at 30.6; plus $24.7mil on CD3 balance sheet at 30.6 = $53.3mil cash (say $0.70 cash per unit) vs $102mil mkt cap at SP $1.42/unit . Other liabilities of ($7mil) deferred tax and then ($13.3mil) performance fee - which really is an investment performance cushion. Therefore the rest of the investment portfolio is being valued at $0.72 based on current share price, whereas carrying value is circ $1.57 (!)
ie Non cash portfolio is (loosely) trading at a
55% discount, based on 30 Aug fx. mmmm.
(20min delay)