"Well not a bad crystal ball you were looking through by the looks of todays sale of 10% of LLoyds ."
Not really: I just offered up a shotgun of things that could happen in regards to Lloyds.
But all I knew was that something had to happen, because the status quo - of Lloyds causing being such a big cancer on group earnings - was unsustainable.
In effect, JYC is receiving cash along with improved profits.
It's not often that those sorts of elements go hand-in-hand.
"Do you by chance know what JYC paid for LLoyds and Maquarie ? "
Not sure.
But from memory, the carrying value of Lloyds in the JYC accounts is around $8.5m (but that's on a fully consolidated basis, JYC's 56% equiry share of that would be ~$5m).
So, based on the $1.45m consideration for 10% on Lloyds, that values it at $14.5m, which is a pretty decent premium to the current carrying value.
Meaning that, even of the remaining 46% of Lloyds gets sold at anything close to the value implied by the related party deal for 10% of the auction business, JYC will book a profit on the sale (on which it will have to pay tax, obviously), but even after paying the tax it will leave the company virtually debt-free.
And the profit uplift will leave the company valued at around 11x to 12x P/E, even after this morning's share price response to the announcement.
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