Powered by MOMENTUM MEDIA
subscribe to our newsletter

Westpac completes institutional entitlement offer

Westpac Bank has completed the institutional component of its entitlement offer as it seeks to raise $3.5 billion in capital.

On Wednesday, 14 October, Westpac announced a fully underwritten, pro rata accelerated renounceable entitlement offer to raise approximately $3.5 billion, which allows eligible shareholders to buy new, fully paid ordinary shares in Westpac at an offer price of $25.50 per new share.

On Friday the major bank announced that it had successfully completed the institutional component of the entitlement offer, raising approximately $1.6 billion.

In a trading update the group said the institutional entitlement offer was strongly supported, with approximately 95 per cent of entitlements taken up by eligible institutions. Entitlements not exercised by eligible institutional shareholders and entitlements of ineligible institutional shareholders were taken up in the institutional shortfall book-build at a clearing price of $30.00 per new share (being the offer price of $25.50 per new share, plus $4.50 per entitlement).

“This represents a 2 per cent premium to the Theoretical Ex-Rights Price (“TERP”) 1,” the group said.

Advertisement
Advertisement

“Eligible institutional shareholders who elected not to exercise their entitlements, and ineligible institutional shareholders, will receive $4.50 in cash for each entitlement sold in the institutional shortfall book-build, less any applicable withholding tax,” it said.

“New shares issued as part of the institutional entitlement offer (including as part of institutional shortfall book-build) are expected to be issued on Thursday, 29 October 2015 and commence trading on ASX on the same day.”

Westpac said that as new shares issued under the institutional entitlement offer will not be entitled to the 2015 final dividend, they will trade under a separate ASX code (“WBCN”) until the ex-dividend date for the 2015 final dividend, expected to be 11 November 2015.

The bank said that new shares will rank equally with existing shares in all other respects.

Westpac completes institutional

PROMOTED CONTENT


>On Wednesday, 14 October, Westpac announced a fully underwritten, pro rata accelerated renounceable entitlement offer to raise approximately $3.5 billion, which allows eligible shareholders to buy new, fully paid ordinary shares in Westpac at an offer price of $25.50 per new share.

On Friday the major bank announced that it had successfully completed the institutional component of the entitlement offer, raising approximately $1.6 billion.

In a trading update the group said the institutional entitlement offer was strongly supported, with approximately 95 per cent of entitlements taken up by eligible institutions. Entitlements not exercised by eligible institutional shareholders and entitlements of ineligible institutional shareholders were taken up in the institutional shortfall book-build at a clearing price of $30.00 per new share (being the offer price of $25.50 per new share, plus $4.50 per entitlement).

“This represents a 2 per cent premium to the Theoretical Ex-Rights Price (“TERP”) 1,” the group said.

“Eligible institutional shareholders who elected not to exercise their entitlements, and ineligible institutional shareholders, will receive $4.50 in cash for each entitlement sold in the institutional shortfall book-build, less any applicable withholding tax,” it said.

“New shares issued as part of the institutional entitlement offer (including as part of institutional shortfall book-build) are expected to be issued on Thursday, 29 October 2015 and commence trading on ASX on the same day.”

Westpac said that as new shares issued under the institutional entitlement offer will not be entitled to the 2015 final dividend, they will trade under a separate ASX code (“WBCN”) until the ex-dividend date for the 2015 final dividend, expected to be 11 November 2015.

The bank said that new shares will rank equally with existing shares in all other respects.

Westpac completes institutional entitlement offer
mortgagebusiness

Latest News

The percentage of young adults looking to pay down their home loans has risen over the past five months, according to new data. ...

Despite the Reserve Bank digging its heels in on the timing of its cash rate climb, Westpac economists have predicted the right conditions w...

Customer-owned banks operate around four branches per $1 billion in assets, while the big four collectively run less than one shopfront per ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

When do you expect the cash rate to start increasing?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.