yep good points MLC and PV, one thing that caught my eye re that announcement, was that LLP said something like the acquisition of these properties "gives LLP enhanced flexibity to deal with its aged care portfolio in the future". I am not sure what they have in mind. Have you got any thoughts? there seems little doubt that LLP will acquire all these properties in the future. These properties do not fit with LLC at all. They are mature properties, and the mature properties fit with the operator(LLP). So at some stage LLP will need to acquire them. But LLP have until 6/2011 i think. Re PTN, i think the proceeds from the sale of these propoerties has to go to reduction of debt. SO I agree with MLC - i am not sure where they will get funding from to exercise the LLP Option. I guess it is all about revenue flow and yield fro the operation of the R/v's. Maybe PTN can make a business case to their banks? But I think more likely, PTN will raise equity after they have completed their restructure. But they are going to have to move quickly, because they said they will restructure before 6/10?? and 6/10 is when the Option expries.
On a good note for LLP, I recall someone at LLP telling me a while ago, that the PTN managed R/V at the centre of the dispute with PTN, were not very profitable - so we are probably better off without them.
I am really comfortable with this stock - it is a bottom drawer candidate for a while. I really do intend to buy more on any weakness. ( in my subconcious i probably like this stock because I am wondering when i will need to buy one of their units!).
cheers
cheers
LLP Price at posting:
19.0¢ Sentiment: None Disclosure: Held
