ANZ today announced the possible on-market buyback for the Series III Convertible Preference Shares (ASX: ANZPC). As a result, ANZ would not formally exercise its right to redeem ANZPC on the first optional call date on the 1st of September 2017.
This would be conducted in conjunction with the offer of a new hybrid capital instrument leaving investors with the following options:
1. To reinvest the ANZPC proceeds into the new hybrid instrument.
2. To have their ANZPC holdings bought back on-market by ANZ at face value for cash.
3. To elect neither of the first two options and do nothing. This would effectively leave ANZPC holdings outstanding on the ASX.
A final decision is expected to be announced in ANZ's third quarter trading update on the 15th of August 2017.