Skip to content

MBL`s Portfolio Endowment Warrants

Document date:  Mon 19 Jun 2000
Published:  Mon 19 Jun 2000 13:58:09
Document No:  210846
Document part:  A
Market Flag:  N
Classification: 

MACQUARIE BANK LIMITED                        2000-06-19  ASX-SIGNAL-G

HOMEX - Sydney                                                        

+++++++++++++++++++++++++
Pursuant to an Offering Circular dated 10 October 1998, Macquarie
Bank Limited has issued Endowment Warrants ("PEWEMG") over the
following portfolio of ordinary shares:

STOCK                                           NUMBER IN PORTFOLIO

AMP Limited ("AMP")                                     5 
Australia & New Zealand Banking Group Ltd ("ANZ")      12 
AXA Asia Pacific Holdings Limited ("AXA")              32 
The Broken Hill Proprietary Company Limited ("BHP")     8 
Brambles Industries Limited ("BIL")                     3 
Commonwealth Bank Of Australia ("CBA")                  5 
Coca-Cola Amatil Limited ("CCL")                       23 
Coles Myer Limited ("CML")                             14 
Colonial Limited ("CGH")                               21 
Fosters Brewing Group Limited ("FBG")                  28 
Lend Lease Limited ("LLC")                              6 
National Australia Bank Limited ("NAB")                 5 
The News Corporation Limited ("NCP")                    9 
Rio Tinto Limited ("RIO")                               5 
St. George Bank Limited ("SGB")                         9 
Telstra Corporation Limited("TLS")                     16 
Westpac Banking Group Limited ("WBC")                  11 
WMC Limited ("WMC")                                    19
Woolworths Limited ("WOW")                             17 
Woodside Petroleum Limited ("WPL")                     11

On 10 March 2000 Commonwealth Bank of Australia ("CBA") announced an
intention to merge with Colonial Limited ("Colonial"). The
announcement stated that the merger will be achieved by a Scheme of
Arrangement. CBA proposed to offer 7 CBA shares for every 20 Colonial
shares.

The Scheme of Arrangement was approved by shareholders at a meeting
on 31 May 2000 and recieved court approval at a hearing on 1 June
2000.

Clause 4.1 (d) of the Terms of Issue of the Portfolio Endowment
Warrant ("Terms of Issue") state that the value of the new CBA shares
("CBAN") issued to Colonial shareholders as consideration for their
Colonial shares is to be treated as a Reduction Amount. The Reckoning
Day for this Reduction Amount is 30 June 2000.

The value of the CBAN shares is defined by clause 4.2 (a) of the
Terms of Issue as their weighted average price (excluding special
sales, overseas sales and option exercises) on the ex-entitlement
date.

The definition of "Offers" in Clause 1.1 of Section 13 of the Scheme
Booklet for the Schemes of Arrangement between Colonial Limited,
Colonial Finance (Australia) Limited and the Shareholders of Colonial
Ordinary Shares, Income Securities and Options in relation to the
proposed merger with Commonwealth Bank of Australia ("Scheme
Booklet"), states that the offers made by CBA to acquire from the
Colonial Ordinary Shareholders all of the Colonial Shares on issue at
the Merger Record Date. The Merger Record Date is given as 8 June on
page 2 of the Scheme Booklet. Therefore, 8 June is the date for
determining entitlements to the CBAN shares, and 9 June is the date
for determining the value of the CBAN shares under clause 4.2(a) of
the Terms of Issue.

The weighted average price (excluding special sales, overseas sales
and option exercises) for CBAN shares on 9 June 2000 was $26.6844 per
share. This equates to an amount of $9.33954 per Colonial share.
Since there were 21 CGH shares in the Portfolio, the Reduction Amount
will be $196.1303 per 1,000 PEWEMG, or $0.19613 pew PEWEMG.

The Outstanding Amount of the Portfolio Endowment Warrants will be
reduced on 30 June by the value of the CBAN shares received as
consideration for the Colonial as determined above.

If you require further information on this matter, please call me on
8232 4042.


R Dixon
MANAGER 
EQUITY MARKETS 
MACQUARIE BANK LIMITED