I am with dargie on the cost to buyout the management rights.The...

I am with dargie on the cost to buyout the management rights.

The most valuable asset that BNB has is the management rights. In my view Dargie's number of $100M to pay these out is very much on the prudent side, I would not be surprised if it was double or triple that easily.

My previous experience of such payouts is that any payout is based upon a formula, the main components of which are:
a) remaining term of contract (if I recall somewhere a period of 20 plus years was mentioned).
b) Funds under management, ie gross assets not the share price, and
c) Opportunity cost, this mainly being a consideration reflecting a component of incremental performance fees and transaction fees forgone. Incremental because it reflects the "ability" of the manager to add value over a benchmark manager.

There is absolutely no way the banks will sell these rights until the health of BBI is maximised and hence the value of these rights restored.

I would love to se a copy of the management agreement.

Cheers