if deal not happen..., page-22

PDS is interesting read (thanks Blueballs for pointing it out)

On the "deal" they seem to say:
- Nothing likely to happen for 3 months but still interested
- Written down their $4m deposit to $2m to reflect the 20c share price v the 40c buy price. Manager believes that they will ultimately recover
- Current raising of funds not to be used for RNC deal

Other interesting points:
- Currently have about 1,600 properties under RMA to RNC's 16,000 so only about 10% of the size (makes you wonder how feasible the original deal was)
- Separate deal with RNC where RNC get 55% of RMIT's RMA income in return for managing on their behalf (maybe RNC should have disclosed this deal themselves?)
- Effectively gives RNC a WA branch and 10% more scale but I am not sure what it means in terms of competing for new RMA's
- Whole structure designed to get around the accounting problem of having to amortise the intangible value of RMA's acquired