Captital Raising, page-42

Guys, I see this as 80% about distributing franking credits (and why wouldn't we want that?) and maybe 20% about reducing debt.

To all those that are getting hung-up on the EPS maths (dilution etc), I say this, stop over complicating the issue. If you imagine yourself as owning the entire enterprise, then it's quite simple.

You are extracting X (div) from the business, and you are depositing Y (exercising rights). So effectively you are extracting X-Y. But you are also extracting franking credits to the tune of 40% of X.

If you had only paid yourself the reduced dividend (no rights) of X-Y, then your extracted franking credits would have been much, much reduced. To maximise the franking credits you need to maximise X.

You are not diluted by the above, if you participate in the rights.