Even if it costs them 7.3%, thay are charging 8.75% at least that is still a margin of 145 BPS and when the loan book is $14B that amounts to some big figures less costs. 100 BPS amounts to $140M less running costs. Even if you value it on 3x earnings that is $400M + $125M they are recieving from WBC. That amounts to $525M or $1.67 per share. Also remember that WBC deal is not final, shareholders can vote no. If we get an improvement in conditions, hence why they only went for 30 days, we could see some share appreciation. This should be closere to $1 per share. There is risk but if they pull it off there will be some massive upside.
RHG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
