The $124M price was based on a $1.15 per share (from the booklet).
Item 1.6 of 2016 Annual report detailed a $90M impairment of goodwill on the Bengerang purchase.
The share price valuing this purchase was around $2 on the day of the resolution and subsequently went back to $1.20. A paper profit really for Robinson.
Just trying to piece out the real journey Jo Robinson and AFF have had as they have joined Webster, taught the company how to grow cotton and now moving on. Is the profit from $1.15 to $1.70 the big gain they share in (say a bit more than $50M). They are paying $8M more to buy back the farm.
The answer to the water question above is 61ML from the booklet p12, in a less reliable part of the catchment. A lot of water though which has gone up in price over this time..
Not concerned about debt as per discussion above (to levels of say 50% of equity) if the profits on the new assets can cover interest. Webster can access pretty cheap debt and have learnt how to farm somewhat reliably in the Riverina (thus reducing overall risk and increasing comfort with some leverage).
Canadian pension fund in for the long haul an interesting anchor shareholder.
My thoughts, if Robinson wants out then shake hands and say thanks. Probably voting yes.
