RE: Could NewMed afford to make a reasonable offer2 Oct 2023 13:12
Hi SF
It's almost impossible to predict what shape an eventual deal could take. If the up front payment is on the low side, then I'd expect a good return on stub equity with a guaranteed minimim ratchet structure to compensate. E.g. 12p/sh in yr 1, 25p/ sh in yr 2, 50p/sh in yr 3. Although my numbers are plucked from thin air for illustrative purposes, the principle would be sound as it would incentivise the buyer/s to accelerate development of the area.
GLA