Have just read through the proposed withdrawal offer and it looks to me like there is some money to be made here.
As I read it they can accept up to 25% of units on issue +5% if more tenders are recieved and + 5% at their discretion ie up to 35% of units on issue.
The discount range will be 5 - 15% to NTA so using the August NTA of $1.05 (and will possibly be higher given raise in markets) they will redeam at between 0.8925 and 0.9975 vs the current market price of 0.715.
therefore say 30% of holdings there is between a 17.75% 39.51% profit available.
There are 173,980k units on issue (plus 67,640 held by Linq fund 2 - I thought they were going to cancel these??)Assuming 30% of units are redeemed at a 15% discount to NTA = 52,194k units @ .8925 = $46,583k. Reducing NTA from $182,679k to $136,096k, leaving 121,786 units on issue and a NTA per unit of $1.118 - an increase of 6.4% (implying a unit price at current discount to NTA of 76c also an increase of 6.3%.
I think I have worked it out correctly - while unit price has consistently disappointed I think there is money to be made here - worst case (30%*17.75% + 70%*6.3% )= 9.71% over current unit price.
Interested in other views / critique of my analysis ?
LRF Price at posting:
71.5¢ Sentiment: ST Buy Disclosure: Held
