You will receive the same number of stapled securities in the new company (Westfield Retail Trust) that you already have in WDC.
In addition you you are entitled to participate in a rights issue of 1 for 4.23 stapled units in WRT at a price of $2.75 per unit & you can apply for more through the public issue if you want to.
It is probably advisable to take up the rights issue in full to avoid diluting your existing shareholding but you then have to decide if you want to have a shareholding in both companies. WRT seems to have only limited growth prospects & will appeal to those shareholders for whom income is more important than growth. For others the alternative is to sell WRT stapled units & use the proceeds to purchase more units in WDC.
However before you make a decision be sure to monitor the prices of both companies after the offer closes. So far the market has been unenthusiastic with the split & there is a good chance that in the short term the combined share prices of both companies will be less than WDC's existing price.
WDC Price at posting:
$9.22 Sentiment: LT Buy Disclosure: Not Held
