Ann: Clarification of market announcement, page-60

There's another reason BOQ sold cheap, last 4 years St Andrews income has declined from $39m to $19m, that's -51%, however gross written premium increased from $55m to $72m, not sure what happened there but they need to spend another few million to restructure their operation and maybe a new brand name, their website is atrocious and obviously a company in neglect. Value accretion in terms of cashflow probably wouldn't happen another 12 months post-acquisition.

You sign a 95% probability the deal go through, the other 5% we're left with a company at current prices $20m market cap, which is made up of half in cash (assuming $8m is already burned) and the other $10m is what's left of the $57m net trail asset. If the TA is indeed worth $10m as the market implied, for FY19 there's no doubt we'll see at least $10m revenue coming from TA, so that's 100% return on *existing* assets.

Imo only dyor