CSE The key Syrah SYR takeover defence, page-9

franking credits are a benefit to shareholders not the company. They are a means to ensure that the profits of a company are not taxed at higher than the MTR of the beneficiary shareholder.

So, RH is right, the net asset value is AFTER company tax. Franking credits should be ignored for for calculating net asset value of a company because in the end the dividend can only be up to the net asset value and the franking credit can only increse the benefit to a shareholder if they are on a tax rate less than the tax that is payable on the grossed up assessable income of the dividend (ie dividend + franking credit amount).

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