New Generation of Stock Doctor
With the regulatory approvals secured, the acquisition of Skilled Group Limited (SKE) by Programmed Maintenance Services Ltd (PRG) was implemented on 16 October 2015.
As an SKE investor, you are to receive the following from PRG for each SKE share:
- Share consideration of 0.55 PRG shares; and
- Cash consideration of $0.25 per share less the Final Dividend ($0.095) and Special Dividend ($0.155) detailed below which reduce the cash consideration to zero;
- The SKE Final Dividend of $0.095 per share with a record date of 7/10/2015, ex-dividend date of 8/10/2015 and payment date of 15/10/2015
- The SKE Special Dividend of $0.155 per SKE share with a record date of 7/10/2015, ex-dividend date of 8/10/2015 and payment date of 15/10/2015
To account for the merger in Stock Doctor, please perform the following steps:
- Under Portfolio Director, click on the portfolio containing SKE. This will take you through to the Portfolio summary screen.
- Ensure you have received the Final Dividend of $0.095 per SKE share on 15/10/2015 in the Income & Expenses section of your SKE holdings portfolio screen
- Ensure you have received the Special Dividend of $0.155 per SKE share on 15/10/2015 in the Income & Expenses section of your SKE holdings portfolio screen.
4. In the ‘Trades and Adjustments’ section, click on the arrow next to ‘Other Transactions’, and select ‘New Reconstruction’.
5. In the new window that opens, enter the follow information:
- Date: 16/10/2015
- Number of shares participating: the original number of SKE shares you hold. In this example we have 1,000 SKE shares at $2.32 per share. You will need to modify the numbers below to reflect your own holdings. New holdings for which rollover relief applies
- Code: PRG
- Quantity: 1,000 x 0.55 = 550 shares (multiply the number of SKE shares you held x 0.55)
- Cost base rolled over (%): 100%
6. Click Save in the bottom right hand corner.
7. Now click on the button ‘Back to Securities’ near the top of the page and you should note you will have the new PRG shares in your holdings where the total cost base of your SKE holdings is now the total cost base of your PRG holdings.
Congratulations, you have now accounted for the PRG takeover of SKE in Stock Doctor.