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Hi James. Can you please explain the TWER which have appeared in my portfolio. And comment on the value of the TWE entitlement offer. Hi Team Can you explain what is happening with the twe capital raise I have 2000 shares and now have 212 twer shares showing in my account at a value of $1.04 a share Thanks


Hi Alain & Tony,

Treasury Wines (TWE) are raising capital to fund an acquisition as we’ve covered. This comprised an institutional placement and a retail entitlement offer, structured as an underwritten 1 for 9.45 pro-rata accelerated renounceable entitlement offer. Lets break that up:

  • Underwritten: means an investment bank guarantee’s they will raise a certain amount. If retail share holders do not take up their rights, the bank will stump in the money (for a fee). It gives the company certainty.
  • 1 for 9.45 pro-rata: For every 9.45 shares we hold, we have the right to buy 1 additional new share at $10.80.
  • Accelerated: The time frame it is completed in.
    Renounceable entitlement: Renounceable means the rights can be sold, and are listed on the ASX through the code TWER.
  • The value of the rights is the difference between the current share price and $10.80. i.e. at $11.00, the rights have 20c worth of value.
  • The holder of the rights can 1. Sell them on market 2. take them up 3. do nothing and potentially receive the difference in a cash payment when the shares, attached to the rights are placed in a bookbuild and sold to institutions.
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Treasury Wines Estates Ltd (TWE)
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