Ann: Vita Group Market Update, page-20

volcanochemical
Vita bought the stores at ~1.5m which was is a combination of paying for fixtures and fittings (possibly stock) as well as the income stream from that store.

I can't see Telstra paying 1.5m per store (given Vita are at best selling them an income stream for 4 years), but there seems to be a range of outcomes and I'm in no position to see where this may land.
At a minimum telstra will pay for (a) fixtures & fittings, (b) stock, and (c) early termination of the MSA if that is on the table. I would imagine Telstra would also be keen not to create too adversarial an environment with the current owners of the stores as they would want to retain some of those staff, knowledge, client relationships etc, as well as ensuring a smooth transfer of the leases.

As I said earlier, I'm still holding as Vita on the basis that outcomes are uncertain, and a MC of 120-130m is still supported by a combination of the cash on hand and the expected profits (albeit with a hard cut-off date). I'm hoping that Vitas scale (&MSA) will give then a reasonable position to negotiate with, but who knows. I'll wait until results announcement and see what they say at that stage