The ASX announcements on 24/12/09 & 4/12/09 confirm that PPN sold the half share in The Royal Melbourne Hotel Pty Ltd for $1 Million.
If you add that $1M to the $300,000 PPN received for the other half share of the RMH lease a few years ago, then that is a $100,000 profit on the $1.2 M PPN paid for the lease.
The sale of PPN's interest in RMH p/l is an unexpected bonus for shareholders as the value was written down in the balance sheet to $99,000 if I am reading it correctly. That means the company is worth around 9% more than what it says in the balance sheet.
I hope PPN uses all of the $1M from the sale of RMH P/L to reduce its debt rather than buyback more shares. The buyback has increased the majority shareholder's equity to over 80% without him having to spend a cent of his own money. Another 10% and it is game over.
PPN Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
