Ann: Acquisition proposal received, page-8

Agee Geraint.

The offer at $2.31 is NTA reported as at 31st Dec’19.

I assume the offer would be completed by 30Jun’19 so that is another approximately 7 cents per share EPS which is the same as NTA. This based on NPAT gof $9m for H2.

Any offer should include as much of a franked dividend as possible in order to ensure whatever franking credits are available are not wasted.

I would not be surprised if a rival offer is not forthcoming, perhaps from Ho Bee Land.

VLW will generate a huge amount of cash in the next 12 months from scheduled settlements of contracts in hand. Not only realising cash but also the embedded profit in the sales as well. With such a good balance sheet relative to other broad acre developers VLW will have lots of opportunities to pick up good development sites

Recently the VLW share price was at $2.56. During FY’18 the SP touched $2.87

My estimate of fair value is $2.52

It will be fascinating to see how this develops over the next few weeks.

Cheers.....Daicosisgod