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National Australia Bank (NAB) February 2016 demerger of CYBG PLC (CYB)

Stock Doctor Online Instructions

National Australia Bank (NAB) demerged their UK operations as a new company CYBG PLC (CYB) on 8 February 2016. Eligible shareholders received 1 CYB security for every 4 NAB shares they held at a market value of $4.01. Instructions below are for NAB investors who have acquired and held NAB shares on or after 20 September 1985 (implementation of CGT). The ATO has just issued the tax ruling for this demerger Class Ruling CR 2016/13. 

  1. Click on the 'Portfolio’ tab and then click on the appropriate under ‘My Portfolio(s)’, which includes the NAB shares.
  2. Under the ‘Securities Held’ section, find the row National Australia Bank (NAB).
  3. Click the drop down button next to ‘Transaction’ button on the same line, and select ‘New Capital Return’.
  4. In the new pop-up window, enter the ‘Date Received’ as 08/02/2016 and ‘Total Received’ as [$4.01 x CYB securities received]. (Note that the ‘Security Code’, ‘Holding’ and ‘Amount Per Share ($)’ fields will automatically populate).
  5. Click on ‘Save’ at the bottom; the pop-up window should close and your NAB cost base has now been adjusted for the demerger.
  6. Click on the ‘New Buy’ button either under ‘Securities Held’ section.
  7. In the new pop-up window, enter ‘Security Code’ as CYB, the ‘Trade Date’ as 08/02/2016, ‘No. of Shares’ as the CYB securities received as per statement (demerger was on a 1 for 4 basis), ‘Price ($)’ as $4.01 and ‘Fees ($)’ as $0.00. (Note that the ‘Total ($)’ and ‘At Settlement Date’ fields will automatically populate). Please check against your holding statement for the number of CYB securities you ultimately received. This will be rounded down to the nearest whole number.
  8. Click on ‘Save’ at the bottom; the pop-up window should close and the additional CYB securities from the demerger have now been accounted for.

Example on NAB capital return / CYB demerger

  • To calculate the effective capital reduction for NAB shares, we have used the CYB cost base ($4.01 x number of CYB securities allocated) and divide this by the number of NAB shares held at the time of the transaction.
  • As an example if you held 1,000 NAB shares at an average cost of $20 per share, the original NAB cost base would have been $20,000. In the demerger, you would have received 250 CYB securities at a cost base of $4.01 or $1,002.50 total. This also means that NAB shares will have a capital return of $1.0025 per share ($1,002.50 ÷ 1000). Please check against your holding statement for the number of CYB securities you ultimately received. This will be rounded down to the nearest whole number. 
  • Note the total cost base for the new NAB shares and CYB securities will be equivalent to the original cost base for NAB shares.
     

Optional – If you have participated in NAB’s share sale facility.

Select your CYB shares and enter a ‘New Sell’ as normal. In the pop-up window, include the CYB shares sold under ‘No. of Shares’, ‘Price ($)’ received and ‘Trade Date’ from the share sale facility according to the documentation you have received and ensure that the ‘Fees ($)’ are set to $0.00.

 

 

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