The tax payable should be 12c per share, which is the same as...

The tax payable should be 12c per share, which is the same as the franking credit.

MA has stated to me personally and also in the Sydney presentation that they had done some cash-flow analysis and believe the cash balance will be $196m before the distribution. This equates to around 55c per share.

So you can look at this 2 ways:

Scenario 1 - the market is valuing our other assets at 10c per share. If this is the case, they are attributing no value to the 12c franking credit.

Scenario 2 - the market is valuing our other assets at nil, but attributing 10c of value to the franking credit.

In either scenario, the stock is undervalued. Scenario 1 results in an arbitrage for superfunds and tax exempts. Scenario 2 results in no value for our other assets.