I agree that RNC should be disclosing the proposed mgmt contract...

I agree that RNC should be disclosing the proposed mgmt contract (55% RMA income, 80% sales comms) as it would certainly be material to RNC's profit. It is a tad confusing as to whether this arrangement will be implemented whether the sale completes or not.

I can understand why ASIC had issues with PDS. There are a lot of "planned" and "proposed" in the wording and the structure is not straight forward. The RNC sale agreement completely changes RTI if it is successful (debt, equity, mgmt). If the sale is not successful, it will have been a costly mistake to list RTI IMO.

There is a strong precedent for RTI to trade at a discount to its listing price (more so if there is a lack of liquidity). That is why I hope RTI lists first and then a deal is struck with RNC.

As for the new RNC deal being capped at $65m - that sounds like something ASIC would recommend to remove some of the uncertainty for the RTI listing. $65m seems reasonable. I can't imagine RNC accepting less, especially if there is a greater script component.

I'm looking forward to FY13 results, particularly with regards to the sales business and final div.