"The sale which requires shareholder approval will give them a total of AUS$157.9m, which at the current exchange rate of AUS$1.73 to the 1, will give them a total return of 91m. This is not a bad return considering they only purchased the stake little over a year ago, with the total consideration being approximately 25m (this would have been lower if not for the rights issue mid last year at AUS$7.75 which cost near 5m), meaning in total Polo has realised a profit of approximately 264% (over 300% from their initial purchase)."
However according to my calculations using Polo's change of interest notices to the ASX and EXT's Top 20 share holders lists, the figure is closer to A$96,000,000 (~56,000,000 GPB).
This includes ~A$15,000,000 spent on 1,719,388 EXT share (~A$8.73 ave cost p/s), including the rights issue, between Sept and Nov last year. Which have now been sold at an ~A$3,000,000 loss!
So although a return of ~62% in just over 15 months is nothing to be sneezed at, it is nowhere near the 264% suggested in the article.
Regards
Steve
EXT Price at posting:
$6.95 Sentiment: LT Buy Disclosure: Held
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