Ann: Scheme Booklet Registered with ASIC, page-2

Honestly BDO, what the heck?

EV to EBITDA valuation - they used EV at 73m which is their “adjusted EV” due to “capital requirements”. While in comparison to peers, there is no adjustment for peers. Had they just used a standard EV calculation, so we are actually comparing apples to apples: price offered + debt - cash, the multiple will be even lower -> A$55.59+11-40 = A$26.59m, on their EBITDA of A$21.5m = 1.24x

Lowest transaction is 4.1x (high 12.6x) with average at 8.35x.

Even at the lowest EV from past transactions 4.1 x A$21.5m = A$88.15 EV-11+40 = A$117.15m on equity level.

With the Frank Knight valuation, they used all these adjustments and capital reserves requirement bullshit. I’m assuming Frank Knight gave them the lowest valuation report of all the valuers they approach, so this is the lowest of low possible.

Even at the low valuation given at vacant possession. Value at US$38.5m = A$58.7m.

Sell the assets, no more capital reserve requirements and other bullshit. Repay the debt and left over cash of A$29m, total distribution to shareholders 29+58.7 = A$87.7m

That is the worse/lowest possible outcome and the value is still higher.

Board of directors, hello????