I broadly agree with just about all of your comments.
The key thing here, is that when TLS buy back the stores, VTG will end up with more cash on hand than the current market cap!
The SP will re rate to reflect this.
What Maxine elects to do with circa $200M of course is important, particularly for long term holders, but not so important in the short term which is what I am more interested in.
I also want to reiterate for all, that VTG has a significant franking credits stash... Circa 75M!
The corporate advisors will almost certainly be advising, that some sort of substantial return of capital to shareholders would be the best way to unlock some of that hidden value.
Lastly, Maxine only has circa 18% of the company now..
I don't think it would be too difficult to round up enough votes to apply some sort of pressure for a rational use of that capital, if it started to look like that was required..
I think this will all be very interesting in any case!
VTG Price at posting:
95.5¢ Sentiment: Buy Disclosure: Held
