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 $US loan.
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Open | High | Low | Value | Volume |
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3 | 31841 | 2.980 |
3 | 63353 | 2.970 |
2 | 26412 | 2.960 |
2 | 1900 | 2.950 |
Price($) | Vol. | No. |
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3.000 | 177928 | 7 |
3.010 | 90198 | 5 |
3.020 | 44504 | 7 |
3.030 | 24099 | 4 |
3.040 | 34217 | 4 |
Last trade - 16.10pm 03/06/2024 (20 minute delay) ? |
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Change
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