How to handle the BHP and Woodside merger

Sharesight makes it easy for investors to handle corporate actions (even complicated mergers and spin-offs) and track the capital gains tax implications.

Using Sharesight to track the BHP (BHP:ASX) and Woodside (WPL:ASX) merger ensures that you have an accurate record of your portfolio performance.

Summary of the merger

On May 19th, 2022, Woodside (WDS:ASX) announced that it had approved to be acquired by BHP Group Ltd (BHP:ASX) effective by June 1st, 2022.

BHP Shareholders will receive 1 share in Woodside share for every 5.5340 BHP shares owned, along side an in-specie dividend to be paid. For BHP American Depository Shares (ADS) holders, you will receive 1 Woodside Share for every 2.7670 shares of BHP ASD held.

This in-specie dividend will also need to be entered in Sharesight for reporting your assessable income in the financial year you receive the in-specie dividend. This will be $5.38 AUD per share in BHP with $2.30 AUD to be fully franked.

Implementing the BHP and Woodside Merger

Adding your Woodside shares

1 - On the portfolio overview page, click the blue ‘Add a new holding’ button

2 - Select to add an opening balance trade for Woodside (WDS:ASX). If you already own WDS, select to enter a buy trade.

3 - Set the date to June 1st, 2022

4 - Enter in the units received (1 share per 5.5340 shares held in BHP).

5 - Enter your cost base as: $29.76 x Woodside units held.

6 - Click ‘Save Trade’ to add to your portfolio. You can attach any relevant documents to the trade as needed such as the scheme of arrangements booklet.

Entering the BHP in-specie dividend

1 - Go to the BHP individual holding page

2 - Scroll to the dividend section under the trades table

3 - Click ‘Enter a New Dividend’

4 - Enter the total dividend received (units held x $5.38)

5 - In the Franking Credit section, enter the franked amount (units held x $2.30)

6 - Click ‘Save New Payment’ to add this to your holding

*Note: You should consult with a tax specialist/accountant for advice on how to handle franking credits for your region

Last modified on December 15, 2023 UTC