tcisboss, I also would like to know how/where you have sourced...

tcisboss, I also would like to know how/where you have sourced the HAL IPO info? Getting an IPO off in these markets would be something to behold.

As for the comments on the value implied in the sale agreement. I completely agree that RNC (the company) is an under achiever when it comes to operating profit (EBITDA). The implied valuation appears generous if you ignore...

REX are not valuing the company based on RNC EBITDA, they are valuing the company based on the returns REX could generate from the assets. No doubt, REX are confident they can squeeze greater revenue from the assets and reduce overheads. Operational leverage is massive.

Do not underestimate the fees that can be earned by rolling the RNC assets under their trust structure. Unit holders take the risk and REX take the mgmt fees on mgmt fees. Very lucrative.

As for funding. Macquarie recently signed off on $20m of debt for RNC. No doubt REX could secure as much (and more) for the same assets. REX also has other assets and earning streams to keep bankers happy. Then there is the unit trust vehicle which appears to have gone well and could provide a decent portion of the required funds.

Funding is far from a slam dunk, but if the deal falls over REX will be buying into RNC at 40c ($4m). The founders of REX are young and aggressive, but I've seen nothing to indicate they are reckless.

As an industry insider, why would you agree to these terms if you were not highly confident of a sale completing now or in the near future? Simple, you wouldn't.