ANZ rights offer

Australia and New Zealand Banking Group Limited (ASX: ANZ; NZX: ANZ) has announced a renounceable rights offer—learn more about the offer and how to take part through the Sharesies platform.

What’s happening?

Australia and New Zealand Banking Group Limited (NZX: ANZ; ASX: ANZ) has announced a 1-for-15 renounceable rights offer to raise $3.5 billion AUD.

It’s raising the money to help fund its acquisition of Suncorp Bank from Suncorp Group Limited.

Note: ANZ refers to the rights offer as an entitlement offer.

A rights offer is one way that a company raises capital (cash). It gives existing shareholders the opportunity to buy more shares in the company—usually at a discounted price and in proportion to the amount of shares they already own.

When a rights offer is ‘renounceable’, it means that you can sell your rights to someone else who can use those rights to buy the shares you’re entitled to.

Eligible shareholders in ANZ were allocated 1 right for every 15 ANZ shares they held at 7 PM (AEST) on 21 July 2022. 

Each right entitles them to buy 1 new share in ANZ for $18.90 AUD or $20.81 NZD per share. These rights are tradeable on the Australian Securities Exchange (ASX) through the Sharesies platform.

Any new shares not taken up through the rights offer will be sold through a shortfall bookbuild. Investors that do not exercise their rights may or may not receive some value if this happens.

To learn more about the offer, check out:

And for some things to consider before taking part, check out:

If you held shares in ANZ at 7 PM (AEST) on 21 July 2022 and you meet the eligibility requirements, including (i) having a registered address in Australia or New Zealand and (ii) not being in the United States (or acting for the account or benefit of someone in the United States), you will be allocated rights as part of this rights offer. 

 A heads-up that due to exchange settlement times and ANZ being in a trading halt, 15 July 2022 was the last day you could buy ANZ shares through the Sharesies platform and be eligible to be allocated rights.

Before taking part

All investing involves risk—you aren’t guaranteed to make money, and you might lose the money you start with. ANZ has summarised the risks it considers relevant to this offer in the investor discussion pack and retail information booklet.

We encourage you to do your due diligence, consider the risks involved, and speak to a financial adviser if you need help deciding whether to take part.

How to take part

Whether or not you’ve been allocated rights, there are a few different ways to take part.

I’ve got ANZ rights

If you were allocated ANZ rights (ASX: ANZR) on Friday 29 July 2022 through the Sharesies platform and you meet the eligibility requirements, you’re able to:

  • buy rights from other investors

  • sell some or all of your rights

  • exercise some or all of your rights.

To view your rights, go to your Portfolio.

I’m keen to take part

If you weren’t allocated rights on Friday 29 July 2022 through the Sharesies platform you may be able to:

  • buy rights from other investors

  • sell some or all of any rights you buy

  • exercise some or all of any rights you buy.

If you buy rights from other investors, you’ll need to be eligible to exercise the rights—this means (i) being a resident in New Zealand or Australia and (ii) not being in the United States (or acting for the account or benefit of someone in the United States).

To get started, search for ‘Australia and New Zealand Banking Group Rights’ from Invest in the Sharesies platform.

Offer breakdown

If you held ANZ shares at 7 PM (AEST) on Thursday 21 July 2022 through Sharesies, you’ll have been allocated the right to buy 1 ANZ share for every 15 ANZ shares you held at a set price of $18.90 AUD or $20.81 NZD per new share

This represents a 12.7% discount to the last traded price of ANZ shares on the ASX before the offer was announced on 18 July 2022.

If you’ve been allocated rights for ANZ, they should’ve appeared in your Portfolio on Friday 29 July 2022 as ‘Australia and New Zealand Banking Group Rights’.

If someone held a fractional amount of shares in ANZ, they’ll have been allocated the amount of rights in proportion to their fractional holding.

ANZ rights are listed on the Australian Securities Exchange (ASX) with the ticker symbol ANZR. You can buy and sell them through Sharesies between 29 July 2022 and 8 August 2022.

With ANZ rights, you may:

  • exercise some (or all) of them

  • sell some (or all) of them

  • do nothing with them.

If you don’t exercise your rights before 6 AM (AEST) Friday 12 August (or sell them by Monday 8 August 2022) through the Sharesies platform, the allocation of shares you were entitled to will become available for other investors to buy in the shortfall bookbuild. You may or may not receive some value for them.

ANZ rights are listed on the ASX with the ticker symbol ANZR, and you can buy them through the Sharesies platform. Note that rights are only listed on the ASX, and if you buy rights, this will be in AUD.

To buy rights, go to Invest in Sharesies, search for ‘Australia and New Zealand Banking Group Rights’, and select Exercise, buy, or sell

Once you've bought ANZ Rights, you may:

  • exercise some (or all) of them

  • sell some (or all) of them

  • do nothing with them.

You’ll need to apply to exercise your rights after purchase if you wish to take part in the offer.

If you’ve already applied to exercise some rights but would like to exercise more, you’ll be asked to cancel your existing application and apply again with the updated number of rights you wish to exercise.

Rights trading period through the Sharesies platform

Friday 29 July 2022 to Monday 8 August 2022

Fees

You’ll be charged the Sharesies transaction fee to buy ANZ rights, and you may be charged currency exchange fees.

ANZ rights are listed on the ASX with the ticker symbol ANZR, and you may sell some or all of your rights through the Sharesies platform. 

To sell rights, go to ‘Australia and New Zealand Banking Group Rights’ in your Portfolio, and select Exercise, buy or sell. Note that rights are only listed on the ASX and if you sell rights, this will be in AUD.

If you don’t sell your rights before the rights trading period ends on Monday 8 August 2022 (or exercise your rights before 6 AM (AEST) Friday 12 August)the allocation of shares you were entitled to will become available for other investors to buy in a shortfall bookbuild. You may or may not receive some value for them.

Rights trading period through the Sharesies Platform

Friday 29 July 2022 to Monday 8 August 2022

Fees

You’ll be charged the Sharesies transaction fee to sell ANZ rights, and you may be charged currency exchange fees.

Each right gives you the option to buy one ANZ share at a set price of $18.90 AUD or $20.81 NZD per share. That means you’ll have to pay the set price per right that you exercise. 

To exercise some or all of your rights, go to ‘Australia and New Zealand Banking Group Rights’ in your Portfolio, and select Exercise, buy or sell.

From there, you’ll need to select whether you are applying to:

  • exercise rights into ANZ shares listed on the ASX for $18.90 AUD per share.

  • exercise rights into ANZ shares listed on the NZX for $20.81 NZD per share

You’ll need to have enough money in your Wallet at the time that you exercise. If you need to convert currency to pay the exercise price, you’ll also need to pay a currency exchange fee

If you exercise your rights, ANZ is expected to allocate the shares you’re buying on Wednesday 24 August 2022.

If you don’t exercise your rights before 6 AM (AEST) Friday 12 August (or sell your rights by Monday 8 August 2022), your allocation of shares will become available for other investors to buy in the shortfall bookbuild. 

If this happens:

  • you may or may not receive some value for them

  • your existing shareholding will be diluted. 

Note: The price you pay for new shares in the offer may be higher or lower than the price that shares are trading at on the ASX or NZX.

Exercise period on the Sharesies platform

Friday 29 July 2022 to 6 AM (AEST) Friday 12 August 2022

Fees

You won’t be charged the Sharesies transaction fee to exercise your rights, but you may be charged currency exchange fees.

Key dates

Sharesies is not responsible for the offer and Sharesies can’t offer any financial advice on whether or not you should take part in this offer.
When taking part through the Sharesies platform, the Sharesies General Terms and Conditions apply (with necessary changes to accommodate this rights offer) and the definition of shares extends to rights. Fees may apply for use of the platform provided by Sharesies Limited. Sharesies may be paid a fee from ANZ for distributing this offer to Sharesies investors. 
The information provided is not financial advice and has been prepared without taking into account your objectives, financial situation, or needs. Speak to a financial adviser for advice specific to your circumstances. 
If you have any questions, get in touch at help@sharesies.com.au.