Question of the Week

Questions of the Week

Co-founder of the Switzer Report
Print This Post A A A

Question 1: I received an email from Westpac about a share purchase plan. Could you please explain this offer and advise. I’m 68 in pension mode, my wife is 63 and can contribute to our SMSF concessionally.

Answer (by Paul Rickard): The share purchase plan (SPP) is part of a $2.5 billion capital raising to strengthen Westpac’s balance sheet. $2 billion of the raising has already been completed through an institutional placement at $25.32 per share. The balance, which is expected to be $500 million (but could be more as Westpac retains a discretion) will be made available through the share purchase plan.

Under the SPP, Westpac shareholders will be eligible to apply for up to $30,000 of new shares. These will be made available at a price which is the lesser of $25.32 (the same price the institutions paid), or the weighted average price of Westpac shares traded on the ASX in the week leading up to the closure of the SPP, less a 2% discount.

Also from this edition