Hi FD I have followed your method but used more...

Hi FD

I have followed your method but used more conservativenumbers.

According to the Merger EM, LP2’s (original) commitment toSSC II was US$8.0m, which represents 3.02% of SSC II’s total inwards capitalcommitment of US$265m.

SSC II owned 76.2% of Dominion. CD2 owns 87.3% of LP2. I have assumed that SSC II still owns76.2% of Dominion and that LP2 has not sold down any of its SSCII holding. Who knows?

Based on the above, SSC II would get 76.2%. Of that,LP2 should get 3.02%. Of that CD2 will get 87.3% thus 2.09 % of whatever the net net settlementproceeds are (rather than the 4% that you used)

It’s hard to know what the proceeds will be after enormous legalfees including contingency fees, taxes, and the likely huge performance fees thatthe SSC general partner will earn on the deal. I have assumed that the profits are split prorata for the 76.2% shareholding- but perhaps the minority management investorsin Dominion will get a super profit, in which case other investors like CD2would get less. Who knows? My guess is that a range of US$400m to 600mwill be left for (100%) investors.

For simplicity I have assumed that Dominion will distribute all of the net net settlement proceeds-but it may want to retain a substantial amount to rebuild its business.

Using a range of US$400m to 600m, I derive a downside case of A$24 cents per CD2 unit, basecase 28cpu and an upside case of about 33cpu, if Dominion retains nothing. But it may be prudent to assumethat Dominion will retain at least 10 cents’ worth for reinvestment. Thesefigures are pre any Australian tax charged on the money eventually distributed toCD2 unitholders, perhaps offset by a foreign tax credit for the US tax paid. Againwho knows, or cares? Apparently not the so-called“Responsible Entity”.

Not advice DYOR