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.
ipl big currency bet that blows up!!!
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Last
$2.83 |
Change
-0.010(0.35%) |
Mkt cap ! $5.496B | |||
| Open | High | Low | Value | Volume |
| $2.85 | $2.86 | $2.81 | $9.330M | 3.295M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 179512 | $2.82 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.84 | 100338 | 7 |
View Market Depth
| Last trade - 16.10pm 09/05/2024 (20 minute delay) ? |
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Last
$2.82 |
Change
-0.010 ( 0.95 %) |
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| Open | High | Low | Volume | ||
| $2.84 | $2.86 | $2.81 | 932520 | ||
| Last updated 15.59pm 09/05/2024 ? | |||||
| IPL (ASX) Chart |