reddys, page-8

Just FYI - If Reddy's was minded to buy rights to Fonda from ACL .. . . then their methodology would most likely involve:

- modelling their expected royalty payments to ACL using reasonably pessimistic assumptions

- arriving at a DCF value of those payments using their corporate WACC . . . . most likely around 10%. . . . .

- then offering to pay a proportion of the resulting valuation. . . .maybe a 30% discount to value.

Now - exactly what that figure they would arrive at using this process I don't know. . . .maybe someone else would like to hazard a guess