Share consolidation question

[goponcho]

Question about an ASX share OPG

In 2014 they underwent a 10:1 consolidation, followed by issuing shares. They did this as another company took these issued shares in order to forgive a big chunk of debt.

Can someone explain what this does to the value of a share from before all this happened to after?
And why is a share consolidation done?

 

[goponcho]

As far i as i can figure
- the initial 10:1 consolidation of shares makes to difference to the amount of equity a preexisting shareholder
- next the share issue dilutes the preexisting shareholders equity by (81mill+15.1mill)/15.1mill ie 6 times
[the 15.1 mill is the number of shares existing after the consolidation as it goes from 151mill to 15.1mill number of shares on issue]

Is this correct?
So basically the purpose of a share consolidation is to allow extensive share dilution while keeping a similar stock price per share?