My dividend reinvestment plan of WDC gave me some WDCN?

jurn · 2 March 2006

Hi everyone,

I bought some WDC (westfield) and checked the box that says to participate in the dividend reinvestment plan.

Now some WDCN shares have appeared in my account
but they don't exactly look that useful. There's only 22 of them so its hardly worth selling, there is hardly any volume.
It says
Security Type NEW
what does this mean?
and did I fill something out incorrectly on my DRP form? I am used to ANZ and CBA where they give you the same share.

:goodnight

visual · 3 March 2006

Jurn,imho new means the same not different,so they are new in the sense that they were bought with the div.Therefore a new date.

bullmarket · 3 March 2006

Hi jurn

It looks to me that the DRP units have been issued under a different code - in this case WDCN.

Reading through the Appendix 3B announcement on the 27/2 I see it says that the New Securities will rank for future distributions from March 1 but for the June 30 distribution these new DRP units will participate in the ratio 122/181.....ie....for the June 30 distribution these new DRP units will receive a distribution equal to 122/181 times whatever the WDC units' distribution will be.

Therefore since the distribution rates for these DRP units and the ordinary WDC units will be different on June 30 they have to be kept and traded separately on the market. I would imagine that after June 30, assuming the DRP shares will participate equally in subsequent distributions, the WDCN units will be incorporated into the WDC code.

In the mean time you will have a small separate parcel of WDCN until June 30

cheers

bullmarket

jurn · 3 March 2006

Hi Bullmarket,

I went to asx.com.au and read that announcement but I didn't understand it
what does "rank for future distributions" mean? Is it to do with those new shares being considered for the next dividend?
If it is a dividend, doesn't westfield only give it out dividends every half year, not every quarter?
and where do they come up with those weird fractions from. hehe

the small parcel is OK for me if they eventually merge back into normal WDC shares.

thank you,
Jurn

bullmarket said:
Hi jurn

It looks to me that the DRP units have been issued under a different code - in this case WDCN.

Reading through the Appendix 3B announcement on the 27/2 I see it says that the New Securities will rank for future distributions from March 1 but for the June 30 distribution these new DRP units will participate in the ratio 122/181.....ie....for the June 30 distribution these new DRP units will receive a distribution equal to 122/181 times whatever the WDC units' distribution will be.

Therefore since the distribution rates for these DRP units and the ordinary WDC units will be different on June 30 they have to be kept and traded separately on the market. I would imagine that after June 30, assuming the DRP shares will participate equally in subsequent distributions, the WDCN units will be incorporated into the WDC code.

In the mean time you will have a small separate parcel of WDCN until June 30

cheers

bullmarket

bullmarket · 3 March 2006

Hi jurn

I'll put my views on your queries in red.

jurn said:
Hi Bullmarket,

I went to asx.com.au and read that announcement but I didn't understand it
what does "rank for future distributions" mean? Is it to do with those new shares being considered for the next dividend?

yes - "rank for future distributions" means the shares it refers to will be eligible for the next and subsequent distributions.

If it is a dividend, doesn't westfield only give it out dividends every half year, not every quarter?
and where do they come up with those weird fractions from. hehe

The distribution paid on 28/2 (I think) will have been for the Dec05 full year and yes since WDC pay 6 monthly distributions the next distribution will be the Jun06 interim distribution.

Now since they say the latest DRP will qualify for future dist's from Mar 1 that means they will be eligible for 4 months out of the 6 from Jan 1 to June 30 which I assume is 122 days out of 181 from March 1 to June 30 and hence the 122/181 ratio.

the small parcel is OK for me if they eventually merge back into normal WDC shares.

I would expect that from Jul 1 the current WDCN units will be included in the WDC code since from then on they will be eligible for the subsequent dist for the full 6 months to Dec06

thank you,
Jurn

cheers

bullmarket

ghotib · 3 March 2006

Is it something to do with the stapling?

Ghoti

boiler123 · 3 March 2006

I have the same problem as jurn. Just got my WDC drp statement and shares allocated are WDCN. Thanks for clarifying the problem.

jurn · 5 March 2006

bullmarket said:
Hi jurn

I'll put my views on your queries in red.

thanks bullmarket. It makes more sense now.

I am expecting the next time WDC goes ex-div, WDCN will also go ex-div, then change into WDC. The WDCN dividend given will be a fraction (given above) of the WDC dividend.

does anyone know if this is a once off or is this typical of WDC?

Jurn

My dividend reinvestment plan of WDC gave me some WDCN?

THIMKER

Privacy & Transparency

Privacy & Transparency