I don't think you understand the situation. The cashbox deal is done. Woolley can't get any more money out of Saban. The trust will no longer have property and the RE no longer has income, and has stated it wants out. Unitholders will receive no income. Around 80% of unitholders want out, their money back, based on yesterdays voting numbers, but are held to ransom by Woolley (of attempted Qantas takeover fame) with his 33% unitholding and a couple of other large unit holders in alliance with him. Raw numbers are 80% of unit holders who have 44% of units want out. If you exclude just Woolley with his 33% unit holding, then 80% of unitholders holding the remaining 67% of units want to exit and have rcu delisted. Clearly Woolley has major disapproval by the vast majority of unitholders to take over the trust. Woolley used his numbers to vote down the distribution of sale proceeds back to unitholders, plus delisting, as proposed by directors. In doing so he has gained access to around $25 million of funds that 80% of unit holders voted not to give him access to. Woolley did not attend the meeting yesterday, nor would his legal representation give any clue to future intentions when specifically asked yesterday. The directors of the company now have little power because of the Woolley voting block, and have no effective control of the Trust. ASIC should look at this situation very carefully. Moving forward it is akin to a new trust starting. My view is that ASIC should delist the Trust, but if the Trust does continue then all unitholders who want to cash-in should be given the option to get out. In that event Woolley (or his nominees) can takeover the trust and raise new capital under a new structure.
RCU Price at posting:
47.0¢ Sentiment: None Disclosure: Held
