Banking on the bank
Westpac is planning one of the biggest-ever capital raising in New Zealand.
Monday, August 2nd 1999, 12:00AM
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Westpac is seeking approval from shareholders to undertake one of the biggest ever capital raising exercises in New Zealand.
The bank announced, on Monday, that it wants to raise $800 million through a share offer on the New Zealand sharemarket. The offer, which is being made through a wholly owned subsidiary of the bank, is part of the bank's capital management programme and is designed to better align the Westpac's shareholder base with the location of its assets and profits.
"Our competitive edge is based on combining the strength of the Group's $138.5 billion in assets with a local focus that meets the specific needs of our customers whether they live in Wagga Wagga or Wanganui," Westpac managing director and chief executive officer David Morgan says currently WestpacTrust in New Zealand contributes 17 per cent of the group's earnings in the six month period to March 31. However, less than two per cent of the bank's issued shares are currently held by New Zealander residents.
Westpac also aims to strengthen its visibility through a high-profile listing and diversify its investor base, including access to the New Zealand capital markets.
The bank says the new class of shares will allow New Zealand investors to receive New Zealand dollar dividends. NZ class shares will have the same voting rights as ordinary shares and they are designed to have their performance aligned with Westpac shares.
"This proposed issue demonstrates Westpac Banking Corp's commitment to New Zealand and ensures we have a complete relationship with New Zealanders as both customers and investors," Westpac chairman John Uhrig says.
Shareholders approval for the offer will be sought at a Special General Meeting on September 2, 1999 in Sydney.
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