PDS is interesting read (thanks Blueballs for pointing it out)
On the "deal" they seem to say: - Nothing likely to happen for 3 months but still interested - Written down their $4m deposit to $2m to reflect the 20c share price v the 40c buy price. Manager believes that they will ultimately recover - Current raising of funds not to be used for RNC deal
Other interesting points: - Currently have about 1,600 properties under RMA to RNC's 16,000 so only about 10% of the size (makes you wonder how feasible the original deal was) - Separate deal with RNC where RNC get 55% of RMIT's RMA income in return for managing on their behalf (maybe RNC should have disclosed this deal themselves?) - Effectively gives RNC a WA branch and 10% more scale but I am not sure what it means in terms of competing for new RMA's - Whole structure designed to get around the accounting problem of having to amortise the intangible value of RMA's acquired
RNC Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
