Tabcorp (TAH) merged with Tatts (TTS), and issued shareholders of TTS with shares in TAH. Eligible shareholders received 0.8 TAH shares for each TTS share they own plus Cash Consideration of $0.265 and Special Dividend of $0.160.
These instructions depend on the provision of capital gains tax rollover relief / Class Ruling from the Australian Taxation Office.
Each TTS security was exchanged for 0.8 TAH security for security holders on the record date of 19 December 2017. TTS has ceased trading and the new TAH securities commenced trading on 27 December 2017.
In the example that follows, we have assumed that we purchased 10,000 shares of TTS at the price of $2.95 on the 29/11/2012.
Before inputting the merger into Stock Doctor’s Portfolio Manager, please ensure that your portfolio have accounted from the Special Dividend of $0.16 per share.
- Navigate to the 'Portfolio Director',
- Click on the portfolio containing TTS.
- Under 'Securities Held',
- Click on TTS. This will take you to the TTS securities screen.
- Under 'Recent Income' (bottom of the page), ensure that your portfolio has recorded the Special dividend of $0.16 per share paid on the 19th of December 2017. (see image below)
To Account for the Merger
Under 'Trades and Adjustments'
- Click on the down arrow next to ‘Other Transactions’
- Select ‘New Reconstruction’.
- In the new dialogue window that opens, enter the following information under the General tab:
- Date: 22/12/2017
Under ‘New Holding for which rollover relief applies area’
Quantity: Enter the (Number of shares in TTS x 0.8).
Ensure to check your statement to determine the exact number of shares as rounding up/down could affect your total TAH holdings. ** In this example, we have considered 10,000 shares of TTS for which the quantity of TAH shares is 8000, but this should be modified to reflect your own holdings**
- Cost base rolled over (%): 100
- Click on the Income & Capital Return Tab
- Enter Other Taxable Income: $2,650 (Cash Consideration of $0.265 x 10,000 shares)
- Click Save
You have now accounted for the merger between TAH and TTS.