wesm shares, page-5

The floor price and cap have changed following the recent 3 for 7 retail offer.

The floor is now $34.49. If some weighted average of WES (you will have to read the Ts & Cs for the specifics) is at or below $34.49 at the time of conversion, you will get 1.25 WES for every 1 WESN.

If between $34.49 and the cap of $43.11, you will get $43.11 of WES shares for every 1 WESN (e.g. it slides from 1.25 WES to 1 WES within that range, so that you always end up with $43.11 of WES).

If above $43.11, the conversion is 1 for 1.

Prior to the conversion, you can always exchange 1 WESN for 1 WES by request.

Other Ts & Cs allow Wesfarmers to defer the conversion date if S & P ASX/200 (or some similar index) is below a certain value when the conversion is due.

I sold all my WES (including those I got in the recent retail offer) and bought back the equivalent number of WESN. I don't know why WESN is not trading at a decent premium to WES, as I like the terms of the deal. WES could almost double from here and it would still be under the floor price, meaning you would get 1.25 WES for every WESN, if the conversion proceeds.

I read an article a few months ago, that said the reason there is no premium is because WESN is not as liquid as WES and is thus less attractive. However, I have found it liquid enough when trying to buy/sell up to 1000 shares, so I don't know why retail investors aren't willing to pay a premium.