"At this share price level, it is likely to trend up steadily because of the coming $3.5 billion on market share purchase. No one will sell shares back to Westpac at the current price."
Should we expect a special dividend to be declared along with the on market buyback?
The only reason I can come up with for the original off market buyback plan, was BOD wanted to buyback MANY MORE shares by tapping into the franking credits. They planned to use their allocated cash + franking credits to maximise the buyback. They cant use franking credits for an on market buyback.
Most likely on market buyback will involve LESS shares because: (a) they can only spend the hard cash they allocated (b) and some of that hard cash may be distributed as special dividends, to release the extra franking credits
Has anybody tried to calculate the numbers?
WBC Price at posting:
$21.00 Sentiment: Hold Disclosure: Held
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