Sniff of a chance for NZ shareholders in Westpac

By KEVIN TAYLOR

Holders of Westpac's New Zealand class shares may this time get a look-in on a share buyback by the bank.

Westpac said yesterday that it would consider a hybrid equity raising, possibly next year, with a share buyback.

Chief financial officer Phil Chronican said the bank would announce its capital management plans after completion of the $2 billion sale of its AGC consumer finance business to GE Capital.

The deal has gained New Zealand Commerce Commission approval, but is yet to get the blessing of the Australian Competition and Consumer Commission.

A decision from the Australian body is expected within a month.

Asked yesterday if New Zealand class shareholders would be included in a share buyback, WestpacTrust chief executive Tom Gallagher said they "would be considered".

Until now New Zealand class shareholders have missed out, drawing the ire of New Zealand share analysts. About 37,000 New Zealanders, including bank staff, hold the shares.

WestpacTrust Investments yesterday announced a tax-paid interim dividend equal to the A34c interim dividend declared for Westpac shareholders, to be paid on July 5.

The amount paid to New Zealand class shareholders will depend on the exchange rate at the time.