Westpac (WBC), like the other 3 major banks have been required to increase its capital ratio to ensure greater strength and less risk in its lending activities and has followed the other banks in raising some of this requirement by issuing shares to current shareholders at a significant discount.
At the close of trading today, WBC shares were $31.27, so the price of the new shares at $25.50 represents a discount of 18.45%.
Shareholders still have one week until 11th November to pay for and take up their entitlement of one new share for every 23 they currently hold.
If they do nothing the rights to the new shares (currently worth $4.79 per share) will be sold on their behalf and the funds forwarded to them.
So: 1. Should you wish to take up the offer, contact Sue as soon as possible and she will tell you how to go about it. or
2. Should you not wish to take up the shares, do nothing!
If you have any queries (as always) please contact us.