I think the 30% franking credit attached to the divi. for the new "Placement" shareholders is a pretty minor concession to get the institutional C. R. away cleanly.
As a new IPH shareholder (I've reinvested my gains from the QIP takeover) I'm happy to see the IPH board at least offer existing shareholders the opportunity to participate in the C.R. via a SPP as it doesn't always happen. Gold standard would be to have a renounceable rights issue for existing holders, but that would be adding to the complexity of the C.R.
The market appears to be happy with the EoFY results and the C.R. arrangements with the SP up about 4.5% as I write, which opens up a nice arbitrage opportunity; Sell now for $6.35, buy back in the SPP for $5.46, a 16% gain to be taken in cash or additional IPH shares (assuming you can buy back in the SPP all you have sold) and more than covers any franking credits lost. Noice!
DYOR & GLTAH!!
IPH Price at posting:
$6.52 Sentiment: Buy Disclosure: Held
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