I think we can rule out a business as usual for the next 4.5yrs...

I think we can rule out a business as usual for the next 4.5yrs then cliff drop scenario. The master licence agreement has exit provisions that involve a settlement. you cannot expect a party to buy into a Telstra shop(s) create a business and then let it drop. it is a going concern at the end of period. I refer to the Q&A from the earnings call 18feb2021 below (my bold underline). to confirm an earlier post the CFO felt the franking credits were in high 60m are. My personal view is that there will and deal made to bring forward that exit provision, the money will be divided into a special dividend to utilise the franking credits (it also benefits maxine as large shareholder) and some will be held for expansion of SHAW which is the future of the company. As to the amount of the exit deal - I would say it would be 150m+ - why? if the exit provision is market based then the starting point would be 4x EBIT less provisions for corporate expenses. Conclusion is that it is a good buy at current price as there is a lot of uncertain shareholders jumping ship on what is a major change in the company direction (whereas i personally feel that negotiating an exit when there is already a script for it in the contract is less risking than negotiating a renewal and ending up with lower commission due to the over performance of the business in past few years as was the case a few years back). in terms of the SHAW business going forward - why not? its high margin, it is not liekly to be discrupted digitally until there are robots that look after your skin at home, and its a local busienss focus that can be scaled so you have standard equipment operated by certain skilled people who you can hire at know costs. i think it actually is more certain than being at the behest of a large partner like TLS. more control over your business i think. interested to hear feedback.

"Your next question comes from Shane Bannan from Bligh Capital Securities. -------------------------------------------------------------------------------- Shane Bannan, Bligh Capital Pty Ltd, Research Division - Head of Research [5] -------------------------------------------------------------------------------- More in the same vein, I'm sorry. Just the 2 aspects. I mean when this deal was first set up many, many years ago, it was based on an exit multiple determined in the market. Subsequently, you've gone into this sort of 5-year rolling arrangement. I'm just wondering the sort of parameters, which the discussion is taking place, if you can just give us some insight to that. I do appreciate it's early days, but if I can get some feel for that? And secondly, you've built an accessories business which fits quite neatly into the ICT. What happens to that in the scheme of thing? -------------------------------------------------------------------------------- Maxine Joan Horne, Vita Group Limited - Co-Founder, CEO, MD & Executive Director [6] -------------------------------------------------------------------------------- Sure. Well, number one, I will say that, look, there are provisions in our contract that anticipated this scenario and again to ensure transition of value. And that's the discussions that we're having. And that's really all I'm prepared to say about that at this moment in time. Obviously, yes, we have built the Sprout business, and we've built it in such a way that it could either fit quite nicely into the ICT environment as it is today or in fact stand-alone. So again, until we get more clarity on our discussions, I'm not in a position to say one way or the other. -------------------------------------------------------------------------------- Shane Bannan, Bligh Capital Pty Ltd, Research Division - Head of Research [7] -------------------------------------------------------------------------------- Okay. Could we -- in a conceptual sense then, I mean, under the arrangement you do have with Telstra, you've got 4 years from June..."