Of course there will be cash involved. But without us mere mortals being privy to the details of the contacts, we don't know how much cash is involved.
Is it pay out of 'book value' which wont be much after several years of depreciation? This is quite common as a pay out figure in these types of situations.
I very very rarely see the payout being a multiple of business profit (which is whats really needed to maintain the value in VTG).
Agree with many posters that this is a very stupid move on Telstra's behalf, they will not be as efficient long term in operating these outlets (which is why previous management agreed to these 'Master Stores' many years ago). Never the less this will not help VTG.
Given this is integral to the underlying business of VTG, I am not touching this until there is alot more clarity.
VTG Price at posting:
81.5¢ Sentiment: None Disclosure: Not Held