deal rejection, page-14

I think we need to consider what it means to go with the deal or without the deal.

Yes HUM has great prospects, but you need to go for a greater ride through the cashburn of Canada and UK getting up and running and then come out the other side, time period = unknown.

This half's financials are somewhat distorted to the normal period, from falling Aust cards volumes impacting this half's profit, the increased investment for growth and the UK/ Canada BNPL system which they will back end into Aust/ NZ is eating the profits, this will continue until UK/ Canada can at least be break even, until then all other divisions will subsidise.

(As a disgression but not impacting this deal this half also had Forum Financial impact of between $8.1mil to $12mil depending on which aspect of the financials you look at.)

Or got into LFS, obtain the synergy benefits and the dividend is subsidised by the other parts of LFS as well subsidising the growth cash burn.

If HUM pays out at least 0.0471 per share then to my rudimentary calculation, this is the same as LFS dividend of 0.157 per share or 0.3 time your shareholding from income side = to the amount of LFS shares you get.

Share price wise - the profitability and financials will impact the HUM share price more so then as part of LFS where it is a smaller operation.

Unless the $300mil of Flight Centre and associated spending on HUM generates at least what we invest overseas.

The funding for BIg Things means our cash conversion is slower albeit the risk metrics are not showing that much deterioration.

So if LFS is a better deal, what risks are there, same = sentiment - the investment forums/ analysts appear to hate LFS more than HUM.
LFS financials don't look too bad, unsure of what the benefit is for their Treasury operations mentioned by AF compared to HUM's securitised book vs LFS wholesale funding?

But the ASX300 indice will make people like LFS.

So far am in the For corner. And its not because I agree we are getting a great price but that we are part of a bigger balance sheet because of the cash intensity of such an operation.