Macquarie Share Purchase Plan Update
[Update June 5 2009 - Macquarie shares have been allocated. We received our full allocation. You can check on Computershare to confirm your own allocation. Macquarie's CFO, Greg Ward, announced the successful close of the SPP on June 2nd. " 55,000 applications from eligible shareholders for approximately $A669 million of new Macquarie ordinary shares.
Macquarie Chief Financial Officer Greg Ward said Macquarie will accept all valid applications received under the offer, resulting in the allotment of a maximum of 25.2 million new Macquarie shares"]
Macquarie’s SPP offer document has now been mailed out. I haven’t received mine yet, but I got a chance to look through it today on the ASX site. MQG SPP Offer document
There is not a lot more investors need to know since I previewed the SPP, but there are two key points that I’ve seen many forum participants asking.
- Limit on applications. I sorry to say if you own Macquarie in two separate accounts, for example a SMSF and a personal account you can only apply for a maximum of $15,000 combined. See clause 3.2 for details
- Scaleback. In the event of a scaleback please seek medical attention. Sorry that’s the wine speaking. In the event of a scaleback each participant will be scaled back on their Parcel size, shareholding at record date (April 30) or a combination of both. See, size does matter, and in this case it is the size you want to have and the size that you had that matter.
The dates remain the same.
- The closing date is expected to be Friday May 29th.
- Share expected to be allocated on Friday 5th June.
- Despatch date: Holding sent to shareholders 10th June
- Share trading date: 12th June
Other info:
- You can apply for $2,500, $5,000, $10,000 or $15,000 (Anyone not applying for $15k should contact their friendly psychoanalyst)
- You can pay by BPay or something called a cheque, but I have no idea what that is.
- Shares are not eligible for current dividend.
- Shares will be issued at the lower of $26.60 or if price is lower at a 5% discount to the 5 day VWAP of shares prior to closing date.
- Allotment will be rounded down to whole shares with residual amount direct credited or donated to charity if under $2.
- By applying you acknowledge a lot of stuff, to summarise blah blah blah
All the other details are pretty straight forward and are in the offer document. If you have any specific question please feel free to ask, but if it is about your eligibility then you should call your broker.
With the share price still 35% above the offer price I expect a scaleback. My crystal cleared for a brief moment earlier today and I saw 50% flash up. I be happy with that or more and anything over a 40% allocation will keep me smiling.
Related posts:
Here is MQG’s SPP announcement in case anyone is interested.
55,000 apps for $669M resulting in up to 25.2M new shares.
So it appears about 1/3 of eligible shares were taken up and there will be no scale back. I’m waiting confirmation of that this Friday when shares are allocated.
Did the falling share price last week scare people away? Or are that many people strapped for cash that they couldn’t beg borrow or steal $15k?
Leave your response!