Foragers Plan

Hi All,

Thought I would provide some interesting comments made at the Forager roadshow.

•    Forager hold circa 10% of the company.
•    Forager are in dialogue with the CEO and have been pushing for the sale of the equipment financing division.
•    Forager believe equipment financing is quite a hot sector at the moment and would likely sell at a premium to its asset value of $330m.
•    Should it be sold even at $330m and they keep debt gearing at 50% (meaning a $195m debt pay down) they would have $155m of cash left over from this transaction (including the $20m cash in bank they already have).
•    A special $85m fully franked dividend could be paid to utilise their $37m franking credit balance.
•    Even after payment of the dividend, they would be left with a $70m cash balance and the highest return on equity part of their business, the consumer leasing division.

This is quite an interesting prospect. In essence you get the current market cap out in a fully franked dividend and are still left with the best part of the business and a $70m war chest.

Would encourage anyone with a significant holding to get in touch with Forager/Steve to register your support. Will allow him to apply more pressure to management.

Furthermore, they will be voting against the remuneration report.