How to handle acquisition of Cirrus Networks (CNW.ASX) by Atturra (ATA.ASX)
Summary
On December 11, 2023, Atturra completed the acquisition of Cirrus Networks Holdings Limited to enhance the company’s position as a leading Australian diversified adisory and IT solutions provider.
- Record date: 4 December 2023
- Implementation date: 11 December 2023
- Acquisition details: Cirrus shareholders received cash or shares, or cash and shares in Atturra Limited (Atturra) in exchange for their shares in Cirrus
Tax implications
Capital gain
Working out your net capital gain or net capital loss for the 2024 year
This acquisition is a taxable event. You can calculate your estimated tax liability using our CGT calculator. If you have more than one trade, you can add them in Sharesight and run the CGT Report to calculate your tax liability.
To work out your net capital gain or net capital loss for the year, you must take it into account:
- any other capital gains or capital losses you make in the 2024 income year from other transactions
- any net capital losses carried forwards from earlier income years
- whether you can apply the CGT discount to any part of your net capital gain.
Income tax
Working out your taxable income for the 2024 year
You need to declare the dividend received to the ATO when filing your 2024 tax return. Sharesight auto-populates this and all historical dividends in the Taxable Income Report.
To work out your total taxable income for the year, you must take it into account:
- any other investment income, such as dividend, interest or rental income received in the 2024 income year
- Total unfranked, franked amount and franking credit
- Income from partnerships and trusts such as managed funds and ETFs
How to handle this in Sharesight
Default consideration; cash (75%) and stock (25%).
1 – On the overview page, select CNW.ASX
2 - Select Trades & Income tab
3 - Select Add trade or adjustment
4 - Trade date: 11 December 2023
5 - Trade type: Return of capital
6 - Paid On: 11 December 2023
7 - Capital Return Value: Record the amount of cash payment received ($0.0473 cash per share)
8 - Select Save trade
9 - Select Edit Holding tab
10 - Select Merge this holding
11 - Date of Merger: 11 December 2023
12 - New holding: ATA.ASX
13 - Quantity: Record the total quantity of ATA shares received due to acquisition (0.0179 Atturra shares for each Cirrus share).
13 - Select Save trade
Cash consideration
1 – On the overview page, select CNW.ASX
2 - Select Trades & Income tab
3 - Select Add trade or adjustment
4 - Trade date: 11 December 2023
5 - Trade type: Sell trade
6 - Quantity: Record the total quantity of CNW shares held.
7 - Price: $0.063
8 - Select Save trade
Share Consideration
1 – On the overview page, select CNW.ASX
2 - Select Edit Holding tab
3 - Select Merge this holding
4 - Date of Merger: 11 December 2023
5 - New holding: ATA.ASX
6 - Quantity: Record the total quantity of ATA shares received ( 0.0715 Atturra shares for each 1 Cirrus share held)
7 - Select Save trade
Split consideration; cash (50%) and stock (50%)
1 – On the overview page, select CNW.ASX
2 - Select Trades & Income tab
3 - Select Add trade or adjustment
4 - Trade date: 11 December 2023
5 - Trade type: Return of capital
6 - Paid On: 11 December 2023
7 - Capital Return Value: Record the amount of cash payment received ($0.0315 cash per share)
8 - Select Save trade
9 - Select Edit Holding tab
10 - Select Merge this holding
11 - Date of Merger: 11 December 2023
12 - New holding: ATA.ASX
13 - Quantity: Record the total quantity of ATA shares received due to acquisition (0.0357 Atturra shares for each Cirrus share).
13 - Select Save trade
FAQ
Do I need to take any action?
You do not need to take any action. Your broker should automatically handle the acquistion.
What do I receive for my shares?
You will receive cash or shares, or cash and shares in Atturra Limited in exchange for your shares in Cirrus.
What if I did not opt in to elect any scheme consideration?
If valid election is not made by Cirrus shareholders or no election is made, then Cirrus Networks Shareholders will receive the default consideration.
Where can I find the official announcement and details?
You can find more details here
The guide above is a suggestion on how to handle the corporate action in Sharesight and is not finance or tax advice. We advise you to consult your financial advisor or accountant. We also encourage you to review the official Documents for full details.
Last modified on December 20, 2024 UTC