To part fund the Dyno deal IPL took a $US1.6 billion facility to provide funds of $A1.7 billion. At that time the exchange $A/$US exchange rate was 0.94 the highest in say 15 years. Needless to say IPL chose not to hedge this exposure and took a HUGE bet on the $A staying strong.
IPL has refinanced and to match the $A1.7 billion position got only $US1.1 billion - that is IPL lost $US500 million or $A800 million since the $A/$US exchange rate is 0.68. To add black humor to this disaster IPL hedged the new $US loan at 0.68 so if [when] the $A recovers IPL gets no benefit.
To twist the knife this financial error of $A800 million has now been covered at $2.50/share in the insto offering by issuing 320 million shares or 25% of the company.
A big price for the shareholders to cover a crazy decision not to hedge the $US loan.
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Last
$2.84 |
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Mkt cap ! $5.506B |
Open | High | Low | Value | Volume |
$2.84 | $2.86 | $2.83 | $436.5K | 153.6K |
Buyers (Bids)
No. | Vol. | Price($) |
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51 | 49751 | $2.83 |
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Price($) | Vol. | No. |
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$2.84 | 26513 | 42 |
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14 | 36377 | 2.820 |
14 | 38023 | 2.810 |
14 | 34481 | 2.800 |
6 | 17968 | 2.790 |
Price($) | Vol. | No. |
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2.840 | 27657 | 42 |
2.850 | 49182 | 24 |
2.860 | 47014 | 20 |
2.870 | 33730 | 12 |
2.880 | 31148 | 12 |
Last trade - 11.24am 14/05/2024 (20 minute delay) ? |
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Change
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Open | High | Low | Volume | ||
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Last updated 11.42am 14/05/2024 ? |
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