WestpacTrust Investments share offer details

Tuesday, September 7th 1999, 12:00AM

Westpac Banking Corporation shareholders have approved the offer of New Zealand class shares. The shares are designed to reflect and closely track in price the Westpac Banking Corporation Ordinary Shares as listed and traded in Australia, but have the benefit for NZ tax residents of tax credits from an Imputed Dividend, where as currently

New Zealanders who hold Westpac shares do not get the benefit of Australian franking credits. The shares are being issued on a partly-paid basis, with the first payment of $7.20 payable on application. The second instalment will be set by bookbuilding process and is payable by 20 December 2000.

Dividends will be the New Zealand dollar equivalent of dividends paid on Westpac Ordinary Shares.

There are protections in place so that under certain circumstances the shares are exchangeable for Westpac ordinary shares, initially on a 1:1 basis, adjusted for any capital reconstructions.

Based on historical dividends, it will offer a yield of 17.5% over the period 9 October 1999 to 20 December 2000, or an annualised yield of 14.2% over the period.

This is not a direct investment in either WestpacTrust in NZ or Westpac Banking Corporation, but is an instrument designed specifically for NZ investors to get tax efficient dividends from a share that is designed to reflect any capital gains in Westpac Ordinary Shares, and for Westpac to get a wider shareholder base that more closely reflects it's customer base.

Share Offer at a Glance

This 'Offer Highlights' sheet contains summary details only. Further details of the Offer of NZ Class Shares can be found in the Investment Statement, and in the Prospectus.

SUMMARY OF KEY DATES

Opening of the Public Offer	September 6, 1999, 9am
Closing of broker firm applications	October 1, 1999, 5pm
Closing of Public Offer applications	October 5,1999,5pm
Offer Price expected to be set	October 9, 1999
Expected allotment of NZ Class Shares under the Public Offer	October 11, 1999
Expected quotation and trading on the NZSE	October 12,1999
Expected first dividend paid	January 2000
Expected next two dividend payments	July 2000, January 2001
Record date and Final Payment date	December 20, 2000

These dates are indicative only and investors are encouraged to submit their applications as early as possible. WestpacTrust Investments Limited reserves the right to vary any of these dates (other than the Final Payment date) including closing the Offer early.

SUMMARY OF THE OFFER

Offer of up to $800 million of NZ Class Shares in New Zealand and in other selected jurisdictions.
NZ Class Shares are issued on a partly paid basis, and it is expected they will provide an enhanced yield on the First Payment.
First Payment of $7.20 per NZ Class Share to be paid on application.
Final Payment amount will be fixed on or about 9 October 1999 and is due on 20 December 2000.
Applications must be for a minimum of 250 NZ Class Shares and thereafter in multiples of 50 NZ Class Shares.
Application has been made to the New Zealand Stock Exchange to list the NZ Class Shares.

SUMMARY OF KEY BENEFITS

A new opportunity for New Zealand investors:

Westpac is the only bank using a New Zealand company for the purpose of listing on the NZSE.
The NZ Class Shares will provide the only New Zealand domiciled exposure to the Australasian banking sector.
WestpacTrust Investments Limited is expected to be among the largest 15 companies by market capitalisation listed on the NZSE after the Final Payment date on NZ Class Shares. Exposure to Westpac:
Any dividend paid on NZ Class Shares will be the New Zealand dollar equivalent of the dividend paid on Westpac Ordinary Shares, adjusted by the Exchange Fraction.
Voting, exchange, support and other features are designed to enhance the NZ Class Share investment.

Partly paid structure:

Investors are required to pay only $7.20 per NZ Class Share on application.
The Final Payment will be due on 20 December 2000.
The Final Payment amount will be announced on or about 9 October 1999, once the Offer Price is set.

SUMMARY OF KEY DETAILS

Entitlements attached to the NZ Class Share investment:

1. Dividends and Support Deed

Any dividends paid on NZ Class Shares will be the New Zealand dollar equivalent of the dividends paid on Westpac Ordinary Shares, adjusted by the Exchange Fraction with imputation credits attached where available.

Westpac has entered into a Support Deed to ensure WestpacTrust Investments Limited will continue to meet solvency tests after making any dividend payments on the NZ Class Shares.

2. Voting

Holders of NZ Class Shares can indicate their views by post on any resolutions put to a poll at shareholders' meetings of Westpac through special voting arrangements. These voting arrangements are set out in the Prospectus and the Voting Deed.

3. Exchange

NZ Class Shares can be exchanged into Westpac Ordinary Shares on the occurrence of certain events. Some of these events are at the discretion of holders of NZ Class Shares, some are at Westpac's option and some are compulsory. Examples of an Exchange Event include:

A takeover of Westpac;
Non-payment of a dividend equal to the New Zealand dollar equivalent of the dividend paid on a Westpac Ordinary Share;
The liquidation of WestpacTrust Investments Limited.

Pricing:

The Offer Price will be determined on or about 9 October 1999.

« Administration services: $3.5 billion under control

King builds an empire »

Special Offers

WestpacTrust Investments share offer details

Tuesday, September 7th 1999, 12:00AM

Commenting is closed

www.GoodReturns.co.nz