Westpac to Decrease Stake in BT Investment Management

May 31, 2017

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.

To read the press release: please click here.


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Investment Manager Financings, Mutual Fund Financings, Transactions