WIC - Westoz Investment Company

[System]

Westoz Investment Company Limited (WIC) is an investment company that focuses on producing a positive return on funds invested. The management of the company is undertaken by the Manager, a 100% owned subsidiary of Euroz Limited.

http://www.westozfunds.com.au

 

[piggybank]

 

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At a yield of 10% and franking credits on top, WIC (and little brother OZG) are rather appealing income stocks.
Boring, of course. Maybe that's why nobody bothers commenting ?



I hold OZG, waiting for WIC to come a little lower. Sure beats bank interest

 

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good yield for six-monthly FF dividend:

 

[divs4ever]

WAM Capital and Westoz set to merge​

WAM Capital Limited (WAM Capital) (ASX: WAM) and Westoz Investment Company Limited (Westoz)
(ASX: WIC) are pleased to announce that they have entered into a Scheme Implementation Agreement
(annexed to this announcement) to merge the two entities (Proposed Transaction).
Under the Proposed Transaction, WAM Capital will acquire 100% of the shares in Westoz that it does not
currently own through a scheme of arrangement (Scheme). Under the Scheme, Westoz shareholders will
receive new WAM Capital shares as consideration for their Westoz shares. The number of WAM Capital
shares to be offered for each Westoz share will be determined by a formula based on the ratio of the share
price of WAM Capital to the net tangible assets (NTA) of Westoz before tax (pre-tax NTA). Using the
share price of WAM Capital and the pre-tax NTA of Westoz at 30 November 2021 as an example1
, Westoz
shareholders would receive 0.652 new WAM Capital shares for each Westoz share they hold under the
Proposed Transaction, with an indicative market value of $1.447 per Westoz share, representing a 23.7%
uplift over the closing price of Westoz on that day.
It is the intention of the WAM Capital Board of Directors to ensure that all Westoz shareholders receiving
WAM Capital shares issued under the Scheme will be eligible to receive the WAM Capital FY2022 fully
franked interim dividend. A condition of the Proposed Transaction is that Westoz will not pay an interim
dividend and consequently the dividend target for Westoz is withdrawn.
WAM Capital has today announced a similar transaction involving Ozgrowth Limited (ASX: OZG). The
Proposed Transaction is independent of that transaction and the two transactions are not interconditional. The Proposed Transaction will proceed whether or not the transaction between WAM Capital
and Ozgrowth Limited proceeds and vice versa.
WAM Capital Chairman Geoff Wilson AO said: “The WAM Capital Board of Directors believe the merged
entity under the Scheme will provide both Westoz and WAM Capital shareholders with appealing benefits.
We look forward to welcoming Westoz shareholders to the Wilson Asset Management family.”
Westoz Board's Recommendation
Subject to the independent expert determining that the Proposed Transaction is in the best interests of
Westoz shareholders, and in the absence of a superior proposal, the Westoz Board of Directors believe the
Proposed Transaction is in the best Interests of Westoz shareholders and intend to vote their own Westoz
shares in favour of the Proposed Transaction.
Westoz Chairman Jay Hughes said: “An investment in WAM Capital through the Proposed Transaction
offers our shareholders greater liquidity and a more favourable alignment between market price and
underlying asset value for their holdings. WAM Capital also offers a similarly successful track record of
underlying portfolio performance”.

1 Based on WAM Capital’s closing share price of $2.22 per share, Westoz’s pre-tax NTA of $1.346 per share and Westoz’s closing share price of $1.17 per share on
30 November 2021. The implied value of the Offer depends on the value of WAM Capital’s share price and the Westoz pre-tax NTA at the Calculation Date and
the WAM Capital share price at the time the Scheme consideration is issued (on the Implementation Date), and could be higher or lower than the example used.
WAM Capital and Westoz set to merge 23 December 2021
ASX announcement
WAM Capital Limited
ABN 34 086 587 395
Westoz Investment Company Limited
ABN 99 113 332 942 Page 2 of 4
Key benefits of the Proposed Transaction
The Proposed Transaction offers substantial benefits for Westoz shareholders including:
• the ability to exit their investment in Westoz at premium to the stated pre-tax NTA backing of the
company and a premium to the share price of Westoz;
• Wilson Asset Management’s investment expertise and experience;
• Wilson Asset Management’s commitment to shareholder engagement;
• WAM Capital’s track record of investment portfolio performance; and
• WAM Capital’s greater market capitalisation and on-market liquidity.
If the Proposed Transaction proceeds, it will create a single listed investment company with a larger capital
and shareholder base. The merged entity will have:
• stable and clearly articulated investment strategy and a proven investment manager with a track
record of providing investment portfolio performance for shareholders since inception in August
1999;
• the removal of duplication of expenses such as ASX listing fees, share registry fees, audit fees,
compliance costs and other public listed company costs, as well as a larger pool of assets to
spread the expenses across;
• a share price which has historically traded at a premium to the company’s pre-tax NTA; and
• a pre-tax NTA of approximately $1,860.3 million (based on the reported 30 November 2021 NTAs
of WAM Capital and Westoz) and approximately 45,000 shareholders.
Scheme Consideration and Conditions Precedent
As consideration for their Westoz shares under the Scheme, Westoz shareholders will receive new WAM
Capital shares as consideration for their Westoz shares. The number of WAM Capital shares to be offered
for each Westoz share will be determined by a formula, based on the ratio of the volume weighted average
share price of WAM Capital on the calculation date and a 7.5% premium to the pre-tax NTA of Westoz. The
indicative calculation date for this ratio is 31 March 2022, subject to any adjustments required by ASIC or
ASX. It is a condition precedent that at the calculation date, the Westoz pre-tax NTA has not fallen more
than 10% compared to the Westoz pre-tax NTA most recently announced on the ASX prior to the date of
this announcement and the WAM Capital share price premium to NTA remaining between 12.5% and
25.0%.
Scheme Implementation Agreement and indicative timeline
WAM Capital and Westoz have entered into the attached Scheme Implementation Agreement, which
contains the terms and conditions on which WAM Capital and Westoz will implement the Proposed
Transaction. The Scheme Implementation Agreement includes a number of customary clauses and is
subject to conditions precedent including Westoz shareholders approving the Scheme, the independent
expert concluding that the Proposed Transaction is in the best Interests of Westoz shareholders and the
Supreme Court of Western Australia approving the Scheme.
It is currently anticipated that Westoz shareholders will be given the opportunity to vote on the Scheme at
a meeting expected to be held on 4 April 2022. Detailed information relating to the Scheme will be set out
in the Scheme Booklet, which is expected to be sent to Westoz shareholders by the end of March 2022.
WAM Capital Limited
ABN 34 086 587 395
Westoz Investment Company Limited
ABN 99 113 332 942 Page 3 of 4
An indicative timetable for the Proposed Transaction is set out below:
Event Expected date
First Court date 28 February 2022
Scheme Booklet sent to Westoz shareholders By 4 March 2022
Calculation date for exchange ratio 31 March 2022
Scheme Meeting 4 April 2022
Second Court date 8 April 2022
Effective date 11 April 2022
Record date 13 April 2022
Implementation date 21 April 2022
The indicative timetable is subject to finalisation and review with the ASX and ASIC.
Contact details and advisors
Westoz is being advised by Steinepreis Paganin as legal adviser. For further information, please contact
admin@westozfunds.com.au.
WAM Capital is being advised by Mills Oakley as legal adviser


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DYOR

i hold WIC

i will be voting against this

i have had 10 years to buy into WAM if i had wished ( instead i bought WAX and WIC )

WIC as quirky as it seems has be good to me

the current lot ( i have held before ) were bought in April 2020 @ 77.5 cents

WIC WESTOZ INV LTD ORDINARY
Change
Change Code
Balance Date Dividend Type Cents per share Ccy Franked % Ex-Dividend Date Books Close Date Pay Date
30/06/2021 Final 3.000 AUD 100.00 06/08/2021 09/08/2021 27/08/2021
31/12/2020 Interim 3.000 AUD 100.00 01/02/2021 02/02/2021 19/02/2021
30/06/2020 Final 3.000 AUD 100.00 07/08/2020 10/08/2020 27/08/2020

a completely different strategy to WAM , maybe the concept of investors selecting specific strategies is alien to Geoff Wilson

 

[System]

On April 22nd, 2022, Westoz Investment Company Limited (WIC) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between WIC and its shareholders in connection with the acquisition of all the issued capital in WIC by WAM Capital Limited.