(22 June 2004 – Australia) Westpac has completed a structured off market buy-back after the bank said that based on tenders received, the final price for the buy-back had been set at $14.50 per share.Westpac said it would buy back a total of 38,522,487 shares, representing 2.1 percent of the bank’s ordinary shares on issue for a total of $558.6 million.
The bank said tenders of shares at or below $14.50, or as a Final Price Tender, had been accepted in full, and that it would not buy back any shares tendered at prices of $15.00 or above.
“No scale back has been applied to any of the accepted tenders. For shareholders who have successfully tendered, the buy-back price is treated as a fully franked dividend of $10.50 per share and a capital component of $4 per share,” the bank said.
Chief financial officer Philip Chronican said shareholders who sold shares into the buy-back may receive certain tax benefits, depending on their individual circumstances.
“For shareholders who retained their shares, the buy-back enhances future earnings per share while creating a more efficient capital structure,” he said.