WBC - Westpac Banking Corporation

[dabsman]

I bought big on WBC over the last 12 months so I'm happy where it is sitting price wise. How does a demerger play out for a holder? Do we get to choose to keep WBC Australia or convert holding to new WBC NZ bank shares? Do I shunt my WBC shares now? One good thing about demerging would be getting rid of franking credits and getting imputation credits 😊

[winner69]

I bought big on WBC over the last 12 months so I'm happy where it is sitting price wise. How does a demerger play out for a holder? Do we get to choose to keep WBC Australia or convert holding to new WBC NZ bank shares? Do I shunt my WBC shares now? One good thing about demerging would be getting rid of franking credits and getting imputation credits ��

If a normal sort of demerger you’ll end up with shares in both WBCAu and WBCNZ ....cool eh

Some guru will work out WBCNZ capital structure and come up with a share price to list at

[Bjauck]

I bought big on WBC over the last 12 months so I'm happy where it is sitting price wise. How does a demerger play out for a holder? Do we get to choose to keep WBC Australia or convert holding to new WBC NZ bank shares? Do I shunt my WBC shares now? One good thing about demerging would be getting rid of franking credits and getting imputation credits 

Holding shares on the NZ register will make no difference as the company will treat all shareholders the same. The same NZ imputation credits are given to Australian register and Australian residents as for those in NZ. I think any demerger will be done according to Australian rules to maximise the benefit to the majority Australian shareholders with scant regard to NZ resident shareholders.

[winner69]

Holding shares on the NZ register will make no difference as the company will treat all shareholders the same. The same NZ imputation credits are given to Australian register and Australian residents as for those in NZ. I think any demerger will be done to maximise the benefit to the majority Australian shareholders with scant regard to NZ resident shareholders.

And not many Aussies would want to be long term holders of NZ bank

[Bjauck]

And not many Aussies would want to be long term holders of NZ bank

No. I think they may go for a sale by way of institutional and public offer in NZ rather than an issue to existing WBC shareholders.

After the reform to residential property investment, there may be more investor funds looking for a home too.

[dabsman]

Interesting times. Amazing how much I missed reading people's thoughts with this becoming news. Also OCA announcements with the raise. I naturally came straight here for a bit of confirmation bias haha

[macduffy]

Very early days. This may be nothing more than a ploy to see what interest there is in a spin-off; a sale - who might be interested? - or a response to the RBNZ's moves. I am reminded of ANZ's purported reason for buying out minority interests in ANZ (NZ) several years ago - the bigger entity being able to fund itself cheaper than multiple smaller banks.

[mikelee]

I remember reading somewhere that Westpac was actually the first company to be registered in Australia!

[macduffy]

I remember reading somewhere that Westpac was actually the first company to be registered in Australia!

Yes, the old Bank of New South Wales.

[bottomfeeder]

WBC posturing will see them lose the Government Account. I believe they think they are such a large company, and little old NZ can be pushed around to change their requirement for extra capital. SP already retreating.