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TPM and IIN merger instructions  - September 2015

New Generation of Stock Doctor

With the regulatory approvals secured, the merger between TPG Telecom Limited (TPM) and iiNet Limited (IIN) was implemented on 7 September 2015. 

As an IIN investor you had the option of either Cash Consideration or Share Consideration for your IIN shares.  

If you elected the Cash Consideration, you received $8.80 per IIN share, plus a Discretionary Special Dividend of $0.6914 per share, and Top-Up Cash Consideration $0.0586 per IIN share. 

If you elected the Share Consideration, you received 0.5533 TPM shares for each IIN, and received $3.77 per IIN share (to compensate for the scale back).  You should also have received a Discretionary Special Dividend of $0.6914 per share, and Top-Up Cash Consideration $0.0586 per IIN share. That is, you received 0.5533 TPG share plus $4.52 cash.      

A. If you elected Cash Consideration

To account for the merger in Stock Doctor, please perform the following steps:  

  1. Under Portfolio Director, click on the portfolio containing IIN. This will take you through to the Portfolio summary screen.
  2. Ensure you have received the Special Discretionary Dividend of $0.6914 per IIN share in the Recent Income section of your portfolio.

 

 

  1. Under Securities Held, click on the ‘Sell’ button IIN. This will open a New Sale window. 

   4.  Make the following entries:  

      a. Trade Date is 7 September 2015  
      b. No. of Shares should be the number per your statement. 

      The Price is $8.8586.
 

  1. Click Save in the bottom right corner.

Congratulations, you have now accounted for the TPM-IIN merger (cash election) in Stock Doctor.  

 B. If you elected the Share Consideration 

  1. Under Portfolio Director, click on the portfolio containing IIN. This will take you through to the Portfolio summary screen.
  2. Ensure you have received the Special Discretionary Dividend of $0.6914 per IIN share in the Recent Income section of your portfolio.

  3. Under Securities Held, click on IIN. This will take you to the IIN screen.
  4. In the ‘Trades and Adjustments’ section, click on the arrow next to ‘Other Transactions’, and select ‘New Reconstruction’.

    In the new window that opens, enter the follow information:   
  • Date: 07/09/2015
  • Number of shares participating: the original number of IIN shares you hold. In this example we have 1,000 IIN shares at $4.50 per share, with a brokerage fee of $29.95. You will need to modify the numbers below to reflect your own holdings. To do this more easily, take note of the average unit cost of each IIN share you hold now (in our example $4.53).    
  • New holdings for which rollover relief applies
  • Code: TPM 
  • Quantity: 1,000 x .5533 = 553 shares  (multiply the number of IIN shares you held x 0.5533) 
  • Cost base rolled over (%): 57.4425%  

‘New Holdings for which rollover relief does NOT apply’  

Code: IIN

Quantity: 1,000 (this should be the number of IIN shares you held originally)

Value per share: original cost base x 42.5575% in this example $1.9279, assuming an original parcel of 1,000 shares at $4.50 per share and $29.95 brokerage, as above.

To calculate this value for your portfolio multiply the original average unit cost per share for each IIN share x 42.5575%.  

  1. Click Save in the bottom right hand corner.
  2. Now click on the button ‘Back to Securities’ near the top of the page to ‘sell’ the remainder of your IIN shares.

 

  1. Make the following entries after you click the ‘Sell’ button next to the IIN entry in the Securities Held section.

        a. Trade Date is 7 September 2015.     

        b. No. of Shares should be the number per your statement. In our example 1,000. 

The Price is $3.8286 per share (which is $3.77 plus $0.0586 per share).

 

  1. Click Save in the bottom right corner. 

Congratulations, you have now accounted for the TPM-IIN merger (share election) in Stock Doctor. 

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