SOL a beneficiary of NHC and its impact

SOL has 239,395,320 issued share. There are some convertible notes but those are dated 2026 so have ignored.
SOL owns 331,696,418 NHC shares so each SOL share owns indirectly 1.385 NHC share at half year they were valued at $753 million. Today the holding is valued at $1973 million or over $1 billion increase. Plus SOL would have received 86c fully franked for this year (including the NHC dividend released today) that is $285 million ( plus the related franking credits). The total dividends at interim and last year rates are $156 million. They are unlikely , given past behaviour , to want to rachet up the dividend too much but I suspect that they want it to climb so that the old MLT shareholders see SOL as having been positive for them. Without trying to get to technical given that a MLT shareholder got 0.1863 SOL shares for every MLT share and MLT paid 13.75c fully franked then roughly to remain equal the SOL share has to deliver 73c per share this year. MLT did get an extra dividend as they also got the SOL final dividend last year but lets say we have to deliver 75c in total.

75c would mean a 46c final dividend. If we paid 75c we would have paid out $180 million we would still have a $100million left over from the NHC windfall. As NHC seems to have locked in most of 2023 profits it seems we could grow into paying a growing dividend just from what NHC is delivering now.

I haven't even taken into account anything else from the rest of the dividends but cannot see how we can expect less than 75c and that will be a good move forward for SOL and hopefully get interest in this company going again.

I must say that NHC has been a huge winner for SOL over many years - who remembers New Saraji which they sold to BHP for $2,45 billion. That catapulted NHC forward and dumped a lot of cash in SOL. It seems like this gift will do it again.

I am looking forward to their results and that of BKW tomorrow - BKW being the largest shareholder in SOL. Hold all 3.