Yes, I have read the booklet as well and the language used is a master class in obfuscation by Westpac. Could they have made it any less unintelligible?
Nevertheless, my understanding is as follows:
1) On the 11th of February they will calculate the VWAP
2) They will then look at what's been tendered and try to apply the maximum discount to enable to buy as many shares as possible for the $3.5 billion... i.e. to try and pay the lowest cost for the shares.
3) The buyback price will then be calculated as per their document. And it is this price which will apply equally to every seller.
I glean this from the following quote from Page 6 of their original buyback document.
"............
The Buy-Back Price is the lowest price at which Westpac can buy back the targeted amount of capital, based on Applications received from all participating Eligible Shareholders. The Buy-Back Price is calculated by applying the Buy-Back Discount to the Market Price as follows:
Buy-Back Price = Market Price x (1 – Buy-Back Discount).
Where:
Market Price is the VWAP of Shares on the ASX over the five trading days up to and including the Closing Date, calculated to four decimal places, as determined by Westpac; and
Buy-Back Discount is the Discount to be set by Westpac, being the largest Discount to the Market Price within the range of 8% to 14% inclusive (at 1% intervals), which enables Westpac to buy back the amount of capital that it determines to buy back.
........"
My assumption, possibly wrong is that if there is a single buyback price being calculate, it must therefore apply equally to all those who tendered their shares for sale. I'm going to call their helpline for clarification.
What is wrong with these effing bankers? Obfuscation, lying and cheating appears to their only real skill.
WBC Price at posting:
$22.40 Sentiment: Hold Disclosure: Held
(20min delay)