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WAM GLOBAL LIMITED — Capital/Financing Update 2021
Feb 9, 2021
66056_rns_2021-02-09_5d1f5f64-a0d9-43d0-8116-ed51acb0ff8e.pdf
Capital/Financing Update
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WAM Global announces Bonus Issue of Options to all shareholders
10 February 2021 ASX announcement
The WAM Global Limited (ASX: WGB) Board of Directors today announces a one-for-one Bonus Option Issue to all shareholders of the Company, at no additional cost.
Each WAM Global Option provides holders with the opportunity, but not the requirement, to purchase one additional WAM Global share for $2.54 per Option, without paying brokerage fees. The Options can be exercised at any time, up until they expire on 12 September 2022. Shares issued on Options exercised on or before 26 May 2021 will also receive the fully franked interim dividend of 5.0 cents per share, which represents an annualised fully franked dividend yield of 3.9% and a grossed-up dividend yield of 5.6%[*] on the exercise price of $2.54 per Option.
Chairman Geoff Wilson AO said: “Approaching the third anniversary of WAM Global’s listing on the ASX, we are pleased that we have delivered shareholders diversified global equity exposure, solid investment portfolio performance and increased fully franked dividends, while closing the share price discount to net tangible assets. We are excited by the opportunity to significantly grow the Company’s assets to the benefit of all shareholders.”
The investment portfolio currently holds 4.4%[**] in cash and the investment team sees significant opportunities that fit the WAM Global investment process. Lead Portfolio Manager Catriona Burns and the team discussed their positive outlook and a selection of undervalued global growth companies during the WAM Global Interim Results Webinar on 4 February 2021.
The primary purpose of the Bonus Option Issue is to equitably and efficiently grow the Company’s assets, increase its relevance in the market, improve the prospect of broker and research coverage, and gain additional interest from financial planners. The increased size is also expected to reduce the fixed expense ratio of the Company for shareholders.
The Options will trade on the ASX under the code WGBO from 15 March 2021. WAM Global's share registry, Boardroom Pty Limited, will email Option Exercise Forms on 15 March 2021, to eligible shareholders who have elected to receive communication via email to their email addresses on the share register, this email will be sent from
[email protected] . Printed copies will be mailed only to those shareholders who elected to receive communication via mail. If you would like to change your communication preferences, please contact Boardroom directly on 1300 420 372 or [email protected] . WAM Global will trade ex-bonus Option entitlement on 10 March 2021.
The record date to determine entitlements under the Bonus Option Issue is 11 March 2021.
We have attached a factsheet that explains how options work. Please call Corporate Affairs Advisor Olivia Harris on (02) 9247 6755 or email [email protected] with any questions about the Bonus Option Issue.
| Financial year to 31 December 2020 Investment portfolio perf0rmance^ Investment portfolio outperformance^ 15.5% +5.8% Fully franked interim dividend Annualised fully franked interim dividend yield^^ 5.ocps 3.9% Profits reserve Dividend coverage# 43.ocps 4.3 years Exercise price Share price^^ $2.54 $2.54 |
|
|---|---|
*Grossed-up dividend yield includes the benefits of franking credits and is based on a tax rate of 30.0%.
**^Investment portfolio performance and index returns are before expenses, fees and taxes.Cash holdings as at 9 February 2021.
^^Based on the 9 February 2021 share price of $2.54 per share.
Dividend coverage is based on the profits reserve of 43.0 cents per share as at 31 December 2020 and before the fully franked interim dividend of 5.0 cents per share.
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wilsonassetmanagement.com.au [email protected] Telephone. + 61 2 9247 6755 Level 26, Governor Phillip Tower Fax. +61 2 9247 6855 1 Farrer Place Sydney NSW 2000 Australia
ABN 76 624 572 925
Indicative timetable
| Lodgement of Bonus Option Issueprospectus Shares trade ex Bonus Option Entitlements Record date to determine entitlements under the Bonus Option Issue Intended date for issue and entryof Options on the register Electronicprospectus available to shareholders Despatch of Option Exercise Form Tradingin Options commences on ASX Exercise Options on or before to receive the FY2021 fullyfranked interim dividend of 5.0 centsper share Shares trade ex-dividend Payment date of FY2021 fullyfranked interim dividend Options expire |
10 February2021 |
|---|---|
| 10 March 2021 | |
| 11 March 2021 | |
| 12 March 2021 | |
| 15 March 2021 | |
| 15 March 2021 | |
| 15 March 2021 | |
| 26 May 2021 | |
| 31 May2021 | |
| 7 June 2021 | |
| 12 September 2022 (5:00pm Sydneytime) |
WAM Global FY2021 Interim Results Webinar
Chairman and Chief Investment Officer Geoff Wilson AO, Lead Portfolio Manager Catriona Burns, Portfolio Manager Nick Healy and Equity Analyst William Liu discussed WAM Global’s FY2021 interim results and their views on global equity markets and answered shareholders’ questions on Thursday 4 February 2021. You can access a recording here .
About WAM Global
WAM Global Limited, one of Australia’s leading LICs, is managed by Wilson Asset Management. Listed in June 2018, WAM Global provides investors with exposure to an actively managed diversified portfolio of undervalued international growth companies. WAM Global’s investment objectives are to deliver investors a stream of fully franked dividends, provide capital growth over the medium-to-long term and preserve capital. All major platforms provide access to WAM Global, including AMP North, BT Panorama, Colonial First State FirstWrap, Netwealth, Macquarie Wrap and Hub24. WAM Global receives coverage from the following independent investment research providers:
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About Wilson Asset Management
Wilson Asset Management has a track record of making a difference for shareholders and the community for more than 20 years. As the Investment Manager for seven leading LICs: WAM Capital, WAM Leaders, WAM Global, WAM Microcap, WAM Alternative Assets, WAM Research and WAM Active, Wilson Asset Management invests over $3.5 billion on behalf of more than 90,000 retail investors. Wilson Asset Management created and is the lead supporter of the first listed investment companies to deliver both investment and social returns: Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG). Wilson Asset Management advocates and acts for retail investors, is a member of the global philanthropic Pledge 1% movement, is a significant funder of many Australian charities and provides all team members with $10,000 each year to donate to charities of their choice. All philanthropic investments are made by the Investment Manager.
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For further information, visit wilsonassetmanagement.com.au or contact:
Geoff Wilson AO Kate Thorley Jesse Hamilton James McNamara Chairman & Chief Executive Officer Chief Financial Officer Head of Corporate Affairs Chief Investment Officer (02) 9247 6755 (02) 9258 4953 (02) 9258 4915 (02) 9247 6755 0405 115 644 0401 944 807 0416 734 080
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[email protected] Level 26, Governor Phillip Tower 1 Farrer Place Sydney NSW 2000 Australia
wilsonassetmanagement.com.au Telephone. + 61 2 9247 6755 Fax. +61 2 9247 6855
ABN 76 624 572 925
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LIC options explained
Many listed investment companies (LICs) issue bonus options to shareholders giving optionholders various benefits, including the opportunity to buy shares at a discount. This fact sheet explains the key features and benefits of LIC options.
Overview
Options give the optionholder the right, but not the obligation, to buy shares in the LIC at a fixed price until they expire. If the share price increases above the option exercise price optionholders have the opportunity to acquire new shares at a discount.
Optionholders have two main choices before their options expire:
1 2
If optionholders take no action, their options will simply expire.
Sell some or all options for a profit.
Exercise some or all options for the exercise price and be issued new shares in the LIC.
Key terms
Bonus option issue
The issue of free options to shareholders by a company. A company may issue bonus options when it lists on the ASX (initial public offering) or once it is trading.
Exercise price
The price shares can be purchased when an option is exercised. Sometimes called the strike price.
Expiry date
Buy shares at a discount
E X A M P L E :
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If shares are trading on the ASX If shares are trading on the ASX
above the exercise price: below the option exercise price:
Optionholders can exercise their Optionholders can choose not to
options and be issued new shares exercise their options and instead
in the company at a discount to the buy additional shares on market at
current market price. less than the exercise price.
Receive shares for
20� less than Share price is below
their current price exercise price -
do not exercise
$1.70
$1.50 $1.50
$1.40
Share price Exercise price Share price Exercise price
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The last day to exercise options.
In the money
A phrase used when the share price of the underlying shares is higher than the exercise price of the option.
Option price
The price options are trading at on the ASX.
Underlying shares
The company shares or securities over which the options are issued. Options can be exercised to receive additional underlying shares.
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Benefits
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Acquire shares at a discount
Until the time the options expire, optionholders can exercise options to receive shares in the company for a fixed price (the exercise price). If the exercise price is lower than the current price of the underlying shares, optionholders acquire shares at a discount.
Receive dividends
If optionholders exercise their options before the record date for dividends, they are entitled to receive any announced dividends for each option exercised. This assumes the shares received from the exercise of options are held on the dividend record date.
Grow assets
Issuing options grows the assets of a LIC. This growth can reduce the fixed expense ratio for shareholders and increase the on-market liquidity of shares in the LIC.
Sell options for a gain
As options trade on the ASX, optionholders can sell their options for a profit. Options are issued at no cost to the optionholder.
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No brokerage
Unlike buying shares trading on the ASX, exercising options allows optionholders to acquire new shares without paying brokerage.
Flexibility
Optionholders have maximum flexibility and can exercise, sell or hold their options in any combination until they expire.
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If you would like further information about LIC options, please contact us:
(02) 9247 6755 | [email protected] wilsonassetmanagement.com.au
Disclaimer: The information provided in this document is general only. It does not take into account the investment objectives, financial situation or particular needs of any person and may not be appropriate for your requirements. We strongly suggest that investors consult a financial adviser prior to making any investment decision.
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