Even if the payout is $200M, it would be split between Centro Properties and Centro Retail.
CRF is not liable for any adverse ruling against CNP. That is what the $10M was put aside for when the recapitalisation took place.
There would have been more class action applicants for CNP than CER given CNP fell much more in % terms and market cap terms than CER.
Also CNP was a majority holder of CER so obviously that reduces the number of claimants by half.
If PWC is liable to pay 1/3 of the $200M, then CER and CNP would be required to foot the bill for the balance of $133M.
Say even if CNP and CER are liable to pay 50% each (this is worst case scenario for CER), then we are liable for $67M.
it should be noted that a CATS liability of $65.8 was provided for in the Dec 11 accounts of CRF.
If we have to pay $67M (around the CATS liability figure provided for), this would reduce NTA approximately by a further 5c ($67m/1.3b shares on issue)
This would bring our NTA to $2.30.
Share price is currently $1.85. This would make CRF trade at about 20% under NTA.
Look at CFX, WRT, CQR, GPT to get a feel for what discounts REITs are currently trading at.
Even if CRF were trading at $2.10, this would still put CRF at a bigger discount to other REITS……
Cheers
CRF Price at posting:
$1.85 Sentiment: Buy Disclosure: Held
