If you’re an ANZ shareholder you may be wondering about the recent entitlement offer and what it means for you.
ANZ is essentially issuing new shares at $18.90 per share as a way of funding their acquisition of Suncorp’s banking division.
If you were an eligible ANZ shareholder, holding ANZ shares at 7:00 PM on the 21st of July 2022, you will receive 1 entitlement to buy an ANZ share at $18.90 for every 15 existing ANZ shares you hold.
Given that ANZ is currently trading above $18.90, these entitlements currently have intrinsic value.
If you have received these entitlements, you have a few options:
Option 1: You can take up the entitlements. To do so, head to: https://retailentitlementoffer.anz.com/offer/ and follow the prompts. You have up until 5:00 PM on 15 August 2022 to take up this option.
Option 2: You can sell your entitlements on the ASX. These entitlements are trading under the code ‘ANZR’ and they will trade up until 8 August 2022. The value of ANZR should be the intrinsic value of the entitlement (ANZ is $22.50 per share at the time of writing less the entitlement price of $18.90 means ANZR should be trading at $3.60). You should contact your broker should you wish to do this.
Option 3: Do nothing. In this case your entitlements will be sold through the retail shortfall bookbuild process, which will occur on 18 August 2022. Although you will likely get close to the intrinsic value of the entitlement at this date, there is NO GUARANTEE you will receive any value for the entitlements sold through the shortfall bookbuild. Any premium received during this process will be paid to you on or about 9 September 2022.
What option you choose may be influenced by tax or funding considerations.
Below is an indicative timetable of the relevant dates for the offer: