A listed company obviously has costs such as Directors, audit, accounting, listing fees, office rent etc. etc. Therefore these costs are being incurred to hold the MAE investment, whereby if the shares were held by you directly, you would not have to incur a porportion of these costs.
If ODY were to realise their investment in MAE, I would say it was take a period of time deciding how to distribute the cash to shareholders. Lets take the example of the shares being sold on June 1 2009. ODY would not be able to issue a fully franked dividend until the tax is paid on the MAE shares that were sold. Otherwise their franking account would go into the red, and franking defecit tax would be incurred.
Therefore it could be 6-12 months after ODY sells their MAE shares before ODY shareholders get any benefit... imo anyway. Plus, I can't see ODY passing on all of the benefits to shareholders. One would assume they would retain some of the cash to fund future exploration.
MAE Price at posting:
40.0¢ Sentiment: Sell Disclosure: Not Held
