Westpac Bank (WBC) is seeking to raise money via a Share Purchase Plan to strengthen their balance sheet, support customer growth and provide an increased buffer above the regulator’s specified capital requirements.
As a current shareholder, you are able to purchase up to $30,000 worth of shares at the lesser of:
• $25.32 per share; OR
• 2% discount to the average price in the 5 business days before the offer closes on 2 December 2019.
The current share price (at time of writing – 13 November 2019) is approximately $26.50 per share.
So if you applied for say $10,000 of shares (assuming the $25.32 price is applied), you would receive 395 more shares and the benefit to you would be $1.18 per share or $466 (based on current share price).
We have sought advice from one of our preferred brokers – Bell Potter on behalf of our clients. They have provided the following comments:
“Given the margin contraction of the banks, and the limited growth we anticipate from them in the coming 12 -24 months we can’t make a blanket participate / do not participate for clients. It’s really determined by the clients preference for income.”
The offer closes on Monday 2nd December 2019 at 5.00pm.
If you wish to participate you need to follow the instructions on the Application Form and make payment using the options provided.
However, for clients that hold their shares via other investment platforms – you will need to provide instructions by 5.00pm Friday 22nd November 2019.
Please email us by then if you wish to proceed with the value of shares you would like to apply for (up to $30,000).
Given the minimal likely benefits of the transaction and Bell Potter’s indifferent view of the banking sector, we will not be contacting clients directly, however we welcome your call if you wish to discuss how this specifically affects you. No transaction fees will apply if you take up the offer.
Finally, please note you are not guaranteed to receive shares to the value you applied for – the offer may be scaled back at Westpac’s discretion which means you would receive less shares and a partial cash refund.
More information
For more information about the offer, please follow the link to the Share Purchase Plan booklet issued by Westpac.
OR speak with one of our advisers;
Leigh Jobling
Partner
Investment Advisory & Wealth
Michelle Griffiths
Partner
Investment Advisory & Wealth
Should you have any queries, please do not hesitate to via email or phone 03 9886 0800.
Disclaimer: Please note we have not taken your individual circumstances into consideration. Whether this investment decision is appropriate for you will depend on your personal circumstances and we encourage you to seek advice before acting on this information. Given the minimal likely benefits of the transaction and Bell Potter tepid view of the banking sector we will not be contacting clients directly, however we welcome your call if you wish to discuss how this specifically affects you. No transaction fees will apply if you take up the offer.