Ann: EHE Market Update-EHE.AX, page-52

"I can't believe there is not going to be an interim Divi!!!"

@Wise_One,

Not sure why you are getting your undies in a twist about this suspended dividend issue, because its really not such a big deal.

Effectively, it makes this a $160m equity raising ($138m per the announcement plus $22m capital preserved from the interim dividend that now won't be paid).

So whether they raise the full $160m now, and then give shareholders $20m back as an interim dividend in a few weeks time, or they raise $140m now and don't pay an interim dividend... it's really the same thing.

As I have argued before, the demographic dynamics of this sector is appealing, but the funding model of the listed operators is not sustainable, and that they needed to be better capitalised.

Whether or not this raising is sufficient to give the EHE board and management the sort of operational and strategic flexibility the want is another matter [*], but at least they have taken some of the medicine.


[*] I still feel that the significant quantum of the RAD liabilities, their highly contingent nature, and that the time timing of their redemption is indeterminate, means that companies like EHE should really be run on a net cash basis, as a matter of prudence.