If you own Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares or are planning to buy them, you may be wondering why they are showing up on brokerage platforms as ANZDA shares right now.
As I explained here yesterday, the bankâs shareholders recently approved the scheme of arrangement that will see the banking giant establish ANZ Group Holdings Limited as its non-operating holding company (NOHC).
Management notes that traditional banking is facing significant disruption from new non-bank competitors, mainly global technology companies launching financial services products. However, these businesses are not regulated in the same way as banks like ANZ.
By making the change to a NOHC setup, ANZ is able to partner with technology companies on a level playing field.
Ultimately, management expects the restructure to make its banking business more efficient by creating a better structure for investing in non-bank partners. It will also provide greater strategic and operational flexibility.
So, what are ANZDA shares?
As part of the process, ANZ needs to issue new NOHC shares to shareholders on a one for one basis.
The old ANZ shares have been suspended from trade and the new NOHC shares are trading under the ANZDA ticker code temporarily. Once the process completes, the new NOHC shares will trade under the original ANZ ticker code.
Right now, ANZDA is trading on a deferred settlement basis. This means that instead of settling your investment on the normal T+2 basis (two days after purchase), investors wonât settle their purchases until the deferred settlement date.
ANZ NOHC shares are due to start trading as normal on 4 January, which means that 6 January is the first settlement date for all on-market trades conducted during the deferred settlement period.
The post What is ANZDA and why has it just hit my ASX portfolio? appeared first on The Motley Fool Australia.
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More reading
- 2 reasons to buy CBA shares before 2023 (and 2 reasons to sell)
- Is there something strange going on with ANZ shares today?
- Here are the top 10 ASX 200 shares today
- Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks
- Buy ANZ Bank and this ASX 200 dividend share: brokers
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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