Captital Raising, page-41

Yes, your right, the issue of new shares is diluting and shareholders do not benefit at one level because earnings per share are less (for each share).

However, HVN have 2 other objectives, firstly to release massive franking credits to shareholders (more shares equals more dividends and franking credits issued). Secondly, and very importantly, to reduce debt. This is the stated aim of the discounted raising, as it was last year.

So, I don’t have a problem with the raising, except that it could have been at a price around $3.50 which would still be attractive to holders and fund more downpayment of debt.

I would also like HVN to consider special dividends or off market share buybacks, either in place of or in addition to discounted rights. However, that decision is the prerogative of HVN and their financial objectives