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2000
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1999
H.e.l.p: Members May Get Only Half
Sun Herald
Sunday February 20, 2000
NRMA members may get only half the value of shares estimated by CS First Boston in a leaked ``draft" when the float of the insurance arm was first proposed.
The average allocation of about $2,300 compares with the ``almost $4,000" for insurance policy holders about 14 months ago.
But NRMA president Nick Whitlam said the new share valuations were higher than those published in newspapers last week and were ``conservative".
The lower PricewaterhouseCoopers valuations were done for a different reason ``to see if it is fair to carve the value up in the proportion recommended".
The document to be sent to NRMA's 1.8 million members from March 10 used estimates by Ernst&Young, Mr Whitlam said.
They value the NRMA between $3.8 billion and $4.6 billion. ``It's closer to $3,000 for the average person," Mr Whitlam said. ``My view is they are conservative. But it's up to the market."
CS First Boston valued the NRMA at $6 billion to $7 billion. E&Y is believed to value the new NRMA shares at $2.60 to $3 each. NRMA members will get at least 174 shares or between $452 and $522 plus 10 shares for each year of membership.
Insurance policy holders start with 314 shares plus 113 for each additional policy. So, a member of 10 years with comprehensive and CTP insurance policies would get 814 shares or $2,117 to $2,442 based on the E&Y valuation. But anti-float director Richard Talbot yesterday called for $800 rebates per insurance member instead.
© 2000 Sun Herald