The question is would you like to hold TOT or HPI through TGP....

The question is would you like to hold TOT or HPI through TGP. The basic operational costs of running the business is about $1.5m with about a 7c NAV value. The funds management business has little value attached to it and I think it is this that has lost the most in the TGP share price. I would be comfortable for them to sell this business (the value is in managing TOT). Sell the HPI shares or at least in-specie them to us. If he does all of this we could realise 80c of value (more in a low interest environment). Will this happen? Probably not because Tony Pitt will privatise at say 65c and he would get most of this value. It is trading at what I estimate is at least a 25% discount to NAV (allowing for HPI & TOT revaluations with higher cap rates). So if TGP falls more then the value is in TGP.