Here, the SPP price represents only a small discount to fair value and shareholders have little incentive to participate, he says. It should be noted that newly issued shares will not be entitled to the 2019 final dividend. The article is current as at date of publication. This announcement is not financial advice or a recommendation to either acquire SPP Shares or withdraw an Application to acquire SPP Shares that has been made under the SPP and has been prepared without taking into account the objectives, financial situation or needs of individuals.
I suspect not. Distributed by Public, unedited and unaltered, on 28 November 2019 00:37:00 UTC, End-of-day quote Australian Stock Exchange - 10/20, Australia shares track global markets lower; tech stocks shine, Afterpay, Westpac link up for Australia savings accounts, Australian shares rise as coronavirus curbs ease in Victoria; NZ flat, Australia shares gain as RBA hints at easing cash rate, INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED, Withdrawal period closes for Eligible Withdrawal Applicants, SPP holding statements dispatched to shareholders, SPP Shares commence trading on ASX and NZX, Visiting the SPP Offer website and following the instructions therein. Trading Performance Disclaimer: Rivkin advise you not to rely solely on back tested data or statistics in order to make any trading decisions. Securities Act') or the securities laws of any state or other jurisdiction of the United States. The commencement of trading and quotation of SPP Shares is subject to confirmation from ASX. Westpac is not licensed to provide financial product advice in respect of SPP Shares. The SPP Offer website can be accessed via, 1800 804 255 (toll free within Australia) or +61 1800 804 255 (from outside Australia) from 8.30am to 8.00pm (Sydney time), Monday to Friday; or. As set out in the SPP Booklet, the Issue Price per SPP Share will be the lesser of: This means that in the event that the VWAP (less a 2% discount) is lower than the Placement price of $25.32, Eligible Shareholders will be able to purchase SPP Shares at the lower price. However, Westpac has noted that it could scale back applications or issue a higher amount depending on demand from investors. Accordingly, the SPP Shares may not be offered or sold, directly or indirectly, to any person in the United States, or to any person acting for the account or benefit of a person in the United States.
You need to be a Strategies user to comment on this post. The final VWAP and the Issue Price per SPP Share determined in accordance with the SPP Terms and Conditions will also be available on the SPP Offer website following the Closing Date. The SPP Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the 'U.S. Westpac Banking Corporation ('Westpac') (ASX: WBC) advises that following discussions with ASIC, Westpac will provide a withdrawal option for SPP applicants who applied for Shares under the Share Purchase Plan ('SPP') prior to the AUSTRAC announcement on 20 November 2019 ('Eligible Withdrawal Applicants'). The SPP will be at the VWAP of the shares traded up to the closing date. On each of the five trading days up to, and including, the Closing Date, the daily VWAP will be made available on the SPP Offer website on the following day. Perpetual does this under The Trust Company (RE Services) Limited Responsible Entity, part of the Perpetual Group. Necessary cookies are absolutely essential for the website to function properly. Please consider your own circumstances before purchasing any of our products or acting on our general advice, for any Rivkin product or recommendation.
Morningstar analyst Nathan Zaia retains his fair value estimate of $29 and maintains his recommendation that shareholders should participate in the latest round of the share purchase plan, given the large discount to his fair value estimate. Refunds to Eligible Withdrawal Applicants must be for the full Application payment. the volume weighted average price ('VWAP') of Westpac shares traded on the ASX during the five trading days up to, and including, the SPP Closing date (2 December 2019), less a 2% discount, rounded to the nearest cent. © 2020 Morningstar, Inc. All rights reserved. Mainstream Separately Managed Account Disclaimer: Perpetual is the both the Issuer and the Responsible Entity of the Mainstream Separately Managed Product, which means it is responsible for the overall governance and compliance of the product. “Despite these near-term challenges, we maintain our recommendation to participate in the SPP, given the large discount to our fair value. Around a dollar under water.
As a consequence, the $300 million hit to net profit after tax would increase the likelihood of a lower dividend, Zaia says. Unless otherwise defined, capitalised words used in this announcement have the meaning given to them in the SPP Booklet. Please read our, is content editor for Morningstar Australia, Zaia stripped Westpac of its Morningstar Exemplary moat rating, we believe the bank has done well in growing the loan book, Westpac stripped of top stewardship rating, CBA returns to growth following ravages of remediation, Aussie banks loosen the shackles on investor lending, How Longlead Capital defied the covid plunge, $25.32 per SPP share, being the price paid by institutional investors under the institutional placement; and. This scenario assumes the bank raises nothing from the current SPP, cops a $2 billion fine, and that reputational damage results in lower loan growth and pressure on net interest margins. “Earnings uncertainty has increased in the short-term, but we retain our $29 fair value estimate and believe Westpac is undervalued.”. Rivkin also provide SMSF administration and accounting services. Hi Tom, You are absolutely correct but with this, you are hoping that WBC doesn’t bounce within the next week as the VWAP (volume-weighted average price) would increase. Westpac’s earnings will recover, and the bank remains undervalued despite the fallout from the money-laundering and child exploitation scandal that has forced the departure of the top brass at Australia’s oldest bank. “On the plus side, while customers will have been disgusted by these claims, seeing leadership face the axe should go some way to reassure customers it is clearly not something the bank takes lightly.
This category only includes cookies that ensures basic functionalities and security features of the website. Can advise if I got this wrong? Zaia has based his latest estimates on a potential fine of $1 billion - $300 million more than the $700 million Commonwealth Bank (ASX: CBA) incurred in 2017 for money-laundering breaches. The stock has traded down heavily since then and is trading this morning at $24.40 which makes the timing of our sell advice look very fortuitous! Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. It is mandatory to procure user consent prior to running these cookies on your website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team.
$25.32 per SPP share, being the price paid by institutional investors under the institutional placement; and; the VWAP2 of Westpac shares traded on the ASX during the five trading days up to, and including, the SPP closing date (expected to be 2 December 2019), less a 2.0 per cent discount, rounded to the nearest cent. The price for the SPP is 2532c. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Ex-dividend date: 12 November 2019 Final dividend payment: 12 December 2019 If you're interesting in applying for the SPP deal, you can do … 1 Kings Cross Road, Rushcutters Bay, NSW 2011. Zaia says Westpac’s response plan is estimated to cost about $80 million and is covered by his prior cost estimate, which retained an allowance for unforeseen remediation costs or litigation. The VWAP period commenced on Tuesday, 26 November 2019 and ends on Monday, 2 December 2019 (inclusive). “Not downplaying the severity of the claims, and the destruction of shareholder value both on the market (even if temporary) and via litigation, our standard stewardship rating aims to encompass a longer-term view,” Zaia says. Click here and become premium now! Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution.
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