The LT holding history of WDC speaks for itself, however the...

The LT holding history of WDC speaks for itself, however the Dividend Ratio has been dropped, which has contributed to the lower SP and sideways movement of late. I also believe that the DRP suspension of late has been focussed on this.

My personal thoughts are

1) A 'pure local play' is very enticing, the business here is doing extremely well and is very profitable. The US and UK businesses are holding it back, whereas before the US was doing very well prior to the GFC.

2) I think it will open up some very interesting possibilities. WDT may eventually decide to raise it's stake in certain properties, which then liberates more cash for WDC to look for more opportunities. I would hope that in a few years that WDT would wholly own at least one property in each capital city.

3) The only 'stumble' here is that they have not spun enough of the local properties into the WDT vehicle. A 70/30 split in WDT's favour would have been a much more exciting deal. It would have left WDC as a less interesting thing to buy into though, with the UK and US businesses weighing so much. It would have seen a massive drop in SP for WDC however.

4) I only hold $2.5K of WDC, so not a major issue for me. I am in favour of this proposal and will take up my shareholder entitlement of about 51 shares. Due to the 1:4.23 entitlement ratio, it's not exactly going to break the bank - less than $150. Would have much preferred to see a 1:2 offer to holders and a smaller public offer (or none at all).

5) I still have some reservations about it, I can see that they are trying to do but I agree with the analysts that there is more restructure coming from WDC. The fact we had a second trading halt is proof of that - capraise for WDC also? Sale of assets overseas? Roll out 50% of the US and UK properties into another REIT? Buy Centro?

6) Still deciding if I want to take up the public offer. $2k min + $500 lots thereafter is a bit more than I wanted to. Disliking the structure of the public offer as I believe more should have been offered to WDC holders.