Sorry but you are not comparing the NTA's as they should be - one does not fully reflect the market price but the assets used in the business as are disclosed in the balance sheet. Firstly the scrip transfer is locked using a price for SOL that is limited to $31.00 per share. In fact as a shareholder in both I think that I am unhappy that SOL shareholders don't vote - I strangely would vote no in SOL and yes in MLT. That decision would be hard for me. I don't know where you get the NTA value as SOL don't report at 30 June and the last report was 31 January 2021. At that time they disclosed the NTA in their balance sheet at $21.90 that reflects the cost or consolidated /equity accounted cost. This is not a LIC so they don't reflect the market price of those assets. They are truly a hybrid. If you took the MLT investments and looked up their balance sheet NTA and valued the shares at that and not the market price you would get a very much lower price than the NTA which is the sum of the market prices for MLT. Only LIC's mark all investments to market..
I am not suggesting that the SOL share price isn't at a price that I think is over the top but at a limitation of $31.00 I think that is probably around full value - Which I have always viewed as the most you should pay for a LIC.
So you are receiving (as I am as well) NTA plus 10% and converting into something that I think is close to full value or NTA.
I personally think this is an expensive price for SOL and I am very happy for my MLT shares but I am not thinking this is a bargain purchase for SOL. as you seem to imply.
MLT Price at posting:
$7.36 Sentiment: None Disclosure: Held
