Takeover soon, page-4

ECX currently don't pay a dividend due to us getting a tax benefit related to the instant asset write-offs...I'm not au fait enough to know if we *can't* pay a dividend, or if we just have no franking credits due ot the tax benefit and so management chooses not to.

Australian shareholders tend to like getting dividends, so I think the fact we don't pay one is part of the reason for the low PE multiple we trade on. Anyone taking ECX over would presumably face the same div restriction/franking math, so while I think ECX is a decent business it might be an unattractive takeover target for as long as the tax benefit/no dividend situation continues.

Personally I'm happy for ECX to continue buying up 5-10% of the register every year in lieu of buybacks, given the low multiple we trade on it is presumably accretive.