A few investors have noticed Forager’s recent sale of our substantial holding in Reckon (RKN). We will provide more details in the September Quarterly Report. But to head off a few questions we have been receiving, our rationale can be summarised into four broad reasons.
First, the spin-off of Reckon’s document management business has eroded value. Now called GetBusy, the business has been separated from the rest of Reckon. It will start trading on London’s AIM exchange this Friday. It is either difficult or impossible for Australian shareholders to own the shares. The best of some bad options was to sell Forager’s holdings into a bookbuild, where we received roughly $0.16 per Reckon share. This rapidly growing part of the business was pencilled in at $0.30-$0.40 per share in our valuation.