I think I've commented on this before.1. It is a good deal for...

I think I've commented on this before.

1. It is a good deal for you with average price of 0.0365. But for those bought at 1.92 /share including Peter Hurley and Stephen Day.

It is not a good deal. Many existing institutional investors are in the same position. Hence, when they see VPG survives with strong liquidity position, and the bank not forcing this upon the company. They naturally won't agree.

The massive loss in the recent HY, was due to VCS writedowns, in addition to other assets writedowns. VCS will gradually disappear as thime goes by and VPG focusing on its core property ownership and fund management business (both are resilient). I believe that the worst will be over by June 2010. After that, with the economy recovering and the fund management business starting to expand. It is reasonabe to expect that VPG will have dividend distribution of say 4c/share.


Furthermore, the Scarborough offer in its current form is only likely to be 10-15c/share conversion price. It is very opportunistic.

Once they hold 19.9% of VPG, it is easy for them to launch a full/majority takeover of the company. This will hinder better offers from other potential acquirers. As a result of this, the directors' wealth (via shareholding) will be eroded.

In view of the above, now that the banks did not force the deal upon VPG, it is reasonable to expect that it will not happen.