Buyers now are well within the 45-day holdingperiod for franking; so, if you pay $1.045 today, you will only receive $1.05 andnot the franking credit, only achieving a very small return after brokerage. That tells me that the market thinks there is almost no downside risk to getting the $1.05 Cash on Aug 21st, or maybe somethink there is a chance of another buyer emerging ahead of the Scheme Meeting next week Friday (July 31st). There has been a lot of M&A activity in this sector lately, and with inflation and interestrates staying low for as far as one can see, stable long term CashFlows are very attractive. But its probably too small for ORG or SKI or QIC.Euroz are happy according to the announcement today. Mgt and the two bidders own nearly 50% and can’t vote, so if 10% or so vote NO, that could be enough as the Scheme is defeated if more than 25% of those who do vote, vote NO.
Last week they got FIRB approval, so I think it is highly likely it will proceed.
