Download Westfield Group Proposed Restructure and Merger

Notice
Notice reference number: 0678.14.06
Notice date: 24/06/2014
What’s this about?
Effective date: 25/06/2014
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Westfield Group Proposed Restructure and Merger with Westfield Retail Trust – Adjustment Implications for
WRT ETOs
ASX Participants and ASX Clear Pty Limited (ASXCL) Participants were advised under ASX Notice No. 0589.14.06
dated 5 June 2014 of the adjustment method to be applied for the Restructure and Merger by Westfield Retail Trust
(ASX Code: WRT) involving a capital return of $0.2853 for each WRT stapled securities held and consolidating every
one stapled security into 0.918 stapled securities followed by code change to SCG and name change to Scentre Group.
For purposes of the ETO adjustment, the last cum-capital returns VWAP for WRT as determined by the ASX was
$3.2816.
For an old contract size of 100 the new contract size was unadjusted, using TMC threshold truncation, and the new
strike price for each series was calculated using a strike factor of 100/100.5410 = 0.994619
For convenience, the method set out in the ASX Notice No. 0589.14.06 for the proposed restructure and merger
involving cancellation or repurchase of Underlying Financial Products is shown below:
Change the Contract Size to the number of Underlying Financial Products calculated in accordance with the following
formula:
NC = BC +
R _____
(SC - r)(OC/BC)
Where:
NC
is the Contract Size immediately after the adjustment
BC =
OC - m
BC= 91.80 for each contract of 100 ordinary shares
based on the reduction ratio of 0.082 for every 1 share
OC
is the Contract Size immediately before the adjustment (currently 100)
m
is the number of cancelled or repurchased Underlying Financial Products attributable to each OC = 0.082/1
* 100 = 8.2 to six decimal places for an existing contract size of 100.
R
is the value of cash return attributable to each OC, R =$28.53 for an existing contract size of 100.
SC
is the volume weighted average price of the Underlying Financial Products traded on the last cum return
Trading Day, Tuesday 24 June 2014 (excluding special, late and overseas trades)
r
is the value of the cash return attributable to each Underlying Financial Product; (r = $0.2853)
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ASX Notice Notice
(continued)
Change the Exercise Price to become the price calculated in accordance with the following formula:
NE =
OE * OC / NC
where:
NE
is the Exercise Price immediately after the adjustment
OE
is the Exercise Price immediately before the adjustment
OC
is the Contract Size immediately before the adjustment
NC
is the Contract Size immediately after the adjustment.
What do I need to do and by when?
Participants should be aware of the content of this Notice as it sets out the treatment of the proposed restructure with
respect to open positions in ASX WRT ETO contracts.
ETO Cash Equalisation Adjustment Payments for Contract Size Roundings
Participants are reminded that ETO cash equalisation adjustments for contract size roundings are effective.
The cash adjustment payments will be posted by ASXCL as close as practicable to the effective adjustment date. For
clarity, ETOs are LEPOs and non-LEPOs (ordinary options, American or European). Takers will be credited and writers
debited a cash equalization payment for any contract size rounding calculations. (For share consolidations, it is possible
for a LEPO taker to be debited if the LEPO strike is standardized back to 1 cent after initial rounding).
Where the old contract size of a series before an adjustment is 100, ASX will apply a standardizing “TMC threshold” so
that if the calculated new contract size falls between 100 and to up to but not including 102, the new contract size will be
truncated to the standard 100, and a cash equalisation adjustment payment made.
For the purpose of the cash equalisation adjustment payment, the percentage of the calculated contract size that was
truncated was determined by ASX to be:
(TC-NC)/TC = (100.5410-100/100.5410 = 0.538089% to six decimal places in the percentage figure.
This was applied to the old daily settlement price.
Effective – Wednesday 25 June 2014.
Participants are reminded that the adjusted contract sizes and strikes will be effective from the start of trading on
Wednesday, 25 June 2014, when the underlying security commences trading on an ex-return basis.
The effective date of the new ASX Code will also be 25 June 2014. WRT ETOs will become SCG ETOs on the same
date.
Participants are advised that any exercises on the day before the effective ASX Code change will be reported manually
in DCS the following day under the new code, ie SCG and not the former code.
Need more information?
Issued by
John Williams, General Manager, Listings Operations
Contact Details
Eldon Hernando +612 9227 0838, [email protected]
4B
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Disclaimer
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