One Steel (OST) was spun out from BHP Billiton (BHP) in October 2000. Under the scheme, eligible shareholders received one OST share for every 4 BHP shares held. Each BHP share held underwent a capital reduction of $0.66 per share, such that the cost base for each OneSteel share is $2.64.
In this example, you originally held 1,000 BHP shares purchased at $8.00 with an associated brokerage fee of $29.95. So the original cost base is $8,029.95.
- Enter the Portfolio in Stock Doctor and select the portfolio containing the BHP shares
- Select BHP under ‘Securities Held’.
- In the new securities window, find the ‘Other Transactions’ button under the ‘Trades and Adjustments’ section.
- Select ‘New Capital Return’.
- Date Received is 20 October 2000.
- Amount is 0.66 per share. The Total Received should update automatically.
- Click Save.
- Enter a new buy, by clicking the New Buy button.
- The Trade Date is 20 October 2000.
- The No. of shares is the original number of BHP shares divided by four, rounded down. In this example, the number of OST shares is 250.
- The price is $2.64 per share.
You have now accounted for BHP/OST spin out in Portfolio Director.
Please note this instruction has been prepared to the best of our knowledge and available information at this time.
If you need any further assistance, please email email@example.com or call 1300 676 333.