Potential Takeover, page-90

Thanks travelbug2 for bringing this issue up, it’s been on my mind for awhile.

Irrespective of one’s opinion on the merits of the new $3m super cap, at this stage it is coming into effect on 1 July 2025, which is now less than 18 months away. It is unfortunate that some of the finer details still seem to be sketchy and the attached article offers a good insight into the issues:

https://www.copyright link/policy/tax-and-super/no-capital-gains-tax-break-for-3m-super-balances-20230305-p5cpix#:~:text=It%20equals%20a%20one%2Dthird,for%20balances%20over%20%243%20million.

Personal circumstances aside, I have been pondering how the super cap changes may affect NEU:

▪️How might this one-off event impact the large NEU shareholders, including management and the board
and their exit timeframes? Will we see a slew of Appendix 3Y’s in the run up to EOFY25 and what
could this do to the SP? How might this then affect shorting or hedge fund/broker trading? (Obviously
some of our large/prominent shareholders and board members are NOT tax residents in Australia).

▪️Could the super cap changes influence management’s thoughts about partnering decisions or timing
eg could it be another complication or reason to tie everything up in a bow before 1 July 2025? How
might their personal, financial circumstances/decisions affect their thinking, if at all?

▪️Will this exacerbate the “sell in May and go away” trend that we tend to see every May or June. I would
think that some of the large shareholders are probably engaging an army of tax minimisation experts
as I type.

Whilst this issue is not specific to NEU, given the fundamental infection points and the attendant big decisions that will occur over the next 12 months, this must certainly be on the radars of the Top 20 and possibly management.

Food for thought….