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QAN Entitlement Issue - QANWAH/QANWAS/QANWAT

Document date:  Thu 22 Aug 2002
Published:  Fri 23 Aug 2002 08:41:18
Document No:  193735
Document part:  A
Market Flag:  N
Classification:  Structured Products Adjustment

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2002-08-22  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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Australia and New Zealand Banking Group Limited will adjust its
QANWAH series of American Call Warrants and its QANWAS series of
European Put Warrants over Ordinary shares in Qantas Airways Limited
(QAN), issued by it under Offering Circulars dated 25 June 2002 and
13 February 2002 (respectively), to take account of the recently
announced capital raising. As there are no current holders of the
QANWAT series issued under Offering Circular dated 25 July 2002, ANZ
advises that this series will not be adjusted.

On 21 August 2002 Qantas announced a pro-rata non-renounceable
entitlement offer with which no indicative issue ratio and indicative
entitlement price were specified. It is certain though, that the new
shares will not be entitled to the $0.09 final dividend payable on 2
October 2002. The terms of the offer are due to be announced prior to
the commencement of trading on an ex-entitlement basis on Friday 23
August 2002.

As the adjusted contract sizes and strike prices rely on the QAN
volume weighted average price (VWAP) (to be disseminated by the
Australian Stock Exchange (ASX) post market-close on Friday 23 August
2002), the 3 warrants series will remain in suspense till pre-market
on Monday 26 August 2002.

Under the terms of issue, ANZ intends to adjust QANWAH and QANWAS in
the following manner (which is based on the general method applied by
the ASX to Exchange Traded Options):

The value of the rights will be determined as follows:

r = S-d-C

where:

r = value of the rights

S = the ex-rights share price (QAN VWAP on the first day of trading
    ex-entitlement)

d = the ordinary dividend that new shares acquired under the
    entitlement offer are not entitled to

C = the consideration paid to exercise the implied rights (this being
    the entitlement price)

The New Contract Size (NC) will be determined as follows:

NC = OC+n*r/S

where:

OC = Old Contract Size, currently (1/3)

n = number of entitlements per Old Contract Size

Accordingly, the strike will be adjusted as follows:

New Strike = Old Strike * OC / NC

Provided that the final issue ratio, final entitlement price, and the
QAN VWAP are known at the relevant time, ANZ will issue a further
notice after the close of business on Friday 23 August 2002 detailing
the adjusted quantities and adjusted strike prices.

Defined terms used in this announcement have the meanings given to
them in the respective Offering Circulars.


J Koenpenkastrop
HEAD OF EQUITY DERIVATIVES