Let's not forget that the SPP was for $10m to give shareholders a chance to participate after the capital raising via placement to institutions of $100m at the lower price of $3.75. A $100m rights issue to existing shareholders would have had a massive shortfall and been very negative for everyone.
So it's not a question of fairness, it's a question of practicality. Many placements are done with no opportunity to participate in an SPP.
Last year Ramsey Health Care did a $1.2bn placement at $56 - a sizeable discount to the share price. In the subsequent $200m SPP allocations were scaled back significantly more than the CHN scale back. That's just the way capital raisings go.
Ann: Share Purchase Plan Opens - Letter and Offer Document, page-96
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