How to handle the BHP and Woodside merger

Content also available for New Zealand, Australian, and UK tax entities or on our global site.

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

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