I have read the same story on AFR. If they do indeed offer a rights issue at $3.50 or thereabouts, this represents an extraordinary discount to existing share price. Raising $1 billion with this rights issue at that price will also result in massive dilution. This will be disastrous for existing shareholders to lose 25% of their value on market open. Unless this rights issue somehow miraculously does the opposite of most rights issues and not completely crush the share price on open. I am crossing everything and praying for a miracle that the market sees this acquisition, and proposed funding differently.
IFL Price at posting:
$4.63 Sentiment: None Disclosure: Held
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