let's talk about dividends, page-4

Other than actually knowing what would happen (which we don't) I cannot help but be in two minds about this.

On the one hand, it makes very little difference to CNP either way to withhold or distribute dividends. On the other a great deal of confidence and vlaue is restored by distributing a dividend.

CNP may view that additional "$2.50" as material enough to withhold a dividend and further reduce gearing.

However, much was and has been made of bringing CSF facility down to $50 million to facilitate distributions to other areas of CER and therefore CNP.

I will try to be clear here: From CNP's point of view Reducing the CSF facility to $50 million is about debt reduction ONLY not about being able to move money around teh entities. GET IT. Whether funds flow into CER from CSF after asset sales is irrelevent after the fact. The look through gearing has been reduced regardless of whether funds flow out of CSF or not.

This, in my view is a strong case for "forgoing that "$2.50", and distributing dividends in order to roll funds up directly into CNP irrespective of the fact that look through gearing does not change whether funds stay in CER or not.

I suspect this would have to do needing capital in CNP to facilitate the unwinding of some of teh syndicates and actually and truly separating CER from CNP. Even if this were not the case, CNP may need to restore value and cash up at the head-stock level for longer-term planning and strategising and having funds at the head-stock level may be the best way.