Woolworths Group (WOW) Off-Market Buy-Back: Tender opens 16 April 2019

On Monday, 1 April, Woolworths Group (WOW) announced plans to conduct an off-market buy back, to return up to $1.7 billion to shareholders. Eligible shareholders are able to apply for this offer through us, or directly through the Woolworths Group Share Registry.

What is a buyback?

A buyback is when a company buys its own outstanding shares to reduce the number of shares available on the open market. Companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply.

How to participate in the Woolworths Group buyback

Woolworths Group will send a notification to all eligible shareholders by 16 April 2019. If eligible, you will be able to sell some or all of your Woolworths shares:

  • at a discount of between 10%-14% (inclusive) at 1% intervals of the Market price1, or
  • at the buyback price. This is the price determined by Woolworths Group following completion of the tender process.

As part of the notification, Woolworths Group will send an information booklet and buyback offer form. Please read this information thoroughly.

Eligible shareholders who wish to participate in the Buy-Back will be able to submit their acceptance from Friday, 24 May through one of the following methods:

  1. The preferred and most efficient method for all shareholders is to accept the offer online before 7pm (Sydney Time) 24 May 2019. To do this, please visit www.woolworthsgroup.com.au/buyback and follow the prompts.
  2. Alternatively, you can contact us by phone or email before 5:00pm (Sydney Time) 24 May 2019, or by post (must be received before 24 May 2019)

Impact to CommSec Adviser Services Investment Lending customers

If you are holding WOW shares as collateral on your CommSec Adviser Services Investment Loan, please be aware that acceptance of the buy-back offer may lead to a margin call position. Please ensure that there are sufficient funds available on the loan to facilitate participation without a margin call occurring.

If you would like to discuss how this may impact your CommSec Adviser Services Investment Loan, please call us on 1800 252 351, option 3 (8:30am to 6:00pm, Monday to Friday, AEDT) or email us at InvestmentLending@cba.com.au.

Important information for Exchange Traded Option customers

If you have WOW shares currently lodged as collateral for your Exchange Traded Option positions, you will need to contact us to recall the stock before accepting the Buy-Back offer.

Please be aware that you will be required to provide other stock or cash collateral to cover your Option positions.

Important dates2:

Event Date (2019)

Buy-Back Ex-Entitlement Date: the date that Shares commence trading on an ex-Buy-Back basis. Shares acquired on the ASX on or after this date will not confer an entitlement to participate in the Buy-Back

Friday, 5 April

Offer period opens Distribution of invitations to Eligible Shareholders to participate in the Buy-Back is expected to be completed

Tuesday, 16 April

Offer period closes Offer Forms must be submitted online or received by the Woolworths Group Share Registry no later than 7.00pm (Sydney time)

Friday, 24 May

Buy-back date The date that the Buy-Back Price and scale back (if any) are announced and Buy-Back Contracts are entered into

Monday, 27 May

Buy back price paid to successful eligible shareholders

Thursday, 30 May

Further information

If you have any enquiries regarding the Off-Market Buy-Back, please contact the dedicated enquiry line on 1300 368 664 (within Australia) or +61 1300 368 664 (from outside Australia) between 8:00am and 7:00pm (Sydney time, Monday to Friday).

Important information

1The market price is the current price at which an asset or service can be bought or sold. The maximum buy-back discount is 14% as this is the maximum allowed by the Australian Taxation Office (ATO).

2Please refer to the buyback booklet for the full timetable.

This content is for information purposes only and should not be considered as a recommendation to buy, sell, hold or participate in the Woolworths Group Buy-Back offer. We accept no responsibility, or liability for any inaccuracies contained in this notice.

Published: 16 April 2019