On May 24, 2017, Westpac Banking Corp. (NYSE:WBK) announced an underwritten offer of 60 million shares of Australian investment manager BT Investment Management Ltd. (ASX:BTT.AX), which will reduce Westpac Banking Corp.’s stake from 29% to 10%.
The price range of the offer was $10.25 to $10.75 per share, with the settlement expected to occur on May 26, 2017. The bottom of the price range provided a 16% discount from the closing price of $12.18, in addition to a 30-day VWAP discount of 14%.
This offer is expected to add approximately 10 basis points to the Westpac Banking Corp.’s Common Equity Tier 1 capital ratio. The post-tax accounting gain will be disclosed as part of its Full Year 2017 results. Further, Westpac Banking Corp. intends to sell its remaining 10% stake in BT Investment Management Ltd. in 2018, depending on market conditions.
Macquarie Capital Ltd. was the sole lead manager, underwriter and book runner of this offer.
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