Westpac is allowing investors to withdraw from a $500 million share purchase plan it launched two weeks before a money laundering and child exploitation scandal hit the lender’s share price.
The bank said it had held meetings with corporate watchdog ASIC and was now providing a withdrawal option for shareholders who have applied for shares under a non-underwritten SPP launched on November 4 as part of a wider $2.5 billion capital raising.
Westpac said investors have until December 6 to request their withdrawal from the plan, with all other conditions and key dates remaining unchanged.
Westpac lost as much as $8.06 billion from is market capitalisation after AUSTRAC announced last week it was taking the bank to court over an alleged 23 million breaches of money laundering laws.
The bank’s share price recovered somewhat after it announced on Tuesday its chief executive Brian Hartzer was stepping down and chairman Lindsay Maxsted would follow suit, but it dipped again on Wednesday.
The Australian Financial Review on Thursday reported ASIC was also broadening its investigation into the bank to include whether Westpac had met continuous disclosure obligations under the Corporations Act for its capital raising.
Westpac shares were worth $24.81 before trade on Thursday – 6.5 per cent below the $26.55 price before the AUSTRAC allegations were aired.
Under the SPP, investors could purchase shares at $25.32 or, if lower, the five-day volume weighted average price, less 2.0 per cent, up to and including the close of the plan on December 2.
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