The level of the special dividend might depend on the tax consequences. My understanding is that to be considered a trust, they are required to distribute a large portion of what they earn. I am fairly certain they would like to hold on to the cash to give a bit more strength to the balance sheet, but if they are required to distribute then that is what they will do.
Also, regarding the LVR, my calculations show that when taking into account all assets and liabilities their look-through gearing ratio is currently about 75%, so not as scary as the headline ratio in the last accounts. If they were to breach the LVR, they can just apply cash to pay down the loan.
MUE Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held
