Peter, $3 is the "not less than" amount to in making a Full...

Peter,

$3 is the "not less than" amount to in making a Full Takeover Offer according to the agreement between 'Silverlake' and 'Holliday Group', wherein Silverlake is appointed as the Offeror for the takeover.

$5 is the current share price
RFL 1.66M (approx) shares.
@ $5.00 = $8.29M (as Mr. Ivanovich stated)
equivalent to 2.3 cents per RFL share

But if it happens management might consider allocating proceeds to necessary R&D (software) considerably improving FY16-17 numbers. And if that could be the end of R&D for while......well that would be great.

Against - that RFL would loose its 19.97% share of FIN NPAT @ 6 months to Sept 14 run rate = ~$800K PA. But according to FIN AR FY14 - no dividend/distribution reported so assume no actual cash contribution to RFL to June 2014, but now FIN recently announced an interim dividend payable 09/01/2015 - 14 cents per share (19.97% to RFL = $232K). (Imputation 5.44 cents per share).

If FIN:
NPAT = $4M
Mt Cap = $42.831M (~$5 per share)
PE = 10.7
Then $5 per share seems too cheap to me.
plus for RFL loss of growth asset.

However all in all RFL should sell IMHO provided the price is better than $5 and use the proceeds to solve platform software R&D issues but only on the basis that it will - and big R&D is not recurring issue FY18 on).