How to handle Fairfax and Nine merger
Sharesight makes it easy for investors to handle corporate actions (even complicated mergers) and track the capital gains tax implications. The benefit of using Sharesight to track the Fairfax (FXJ) and Nine (NEC) merger also ensures that you maintain an accurate record of your portfolio performance.
2 – Click ‘Enter a new Trade or Adjustment’.
3 – On the pop-up window, select ‘Return of Capital’ from the transaction type dropdown.
Based on the Scheme Implemented letter, set the:
4 – ‘Paid On Date’ : 07 December 2018
5 – ‘Date of trade’: 28 November 2018
6 – ‘Capital Returns Value’: $0.025 x number of FXJ shares held on Scheme Record Date
7 – ‘Comment’: Fairfax and Nine merger. Scheme record date is 30 November 2018.
8 – Choose a file: to help keep your records in order, you can attach the Scheme Implemented letter.
9 – Click ‘Save this trade’ button.
If you owned 1000 shares of FXJ as of the Scheme Record Date, the Capital Return Value: $25 = 1000 FXJ shares x $0.025.
10 – On the Fairfax Media Ltd Individual Holding Page, click on ‘Holding Settings’ tab.
11 – Click on ‘Merge this holding’ button.
12 – On the Merge Holding pop-up window, set the ‘Date of Merge’ as 30 November 2018.
13 – Click the ‘edit’ link. In the ‘Market price of cancelled holding’, field type 0.58.
14 – Type Nine or NEC in the search field and select ‘ASX:NEC Nine from the dropdown list.
15 – Type in the ‘Quantity’ field: 0.3627 x FXJ shares held on Scheme Record Date (Fairfax shareholders receive 0.3627 new Nine share for every FXJ share)
Example If you owned 1000 FXJ as of the scheme record date, the quantity is 363 = 1000 x 0.018 NEC shares.
The fractional entitlement will get rounded up or down (with any fractional entitlement of less than 0.5 being rounded down and any such fractional entitlement of 0.5 or more being rounded up)
16 – In the ‘Comments’ field, type a note for your reference of why this merger happened.
17 – Click ‘Save changes’.
The Nine Individual Holding Page will load with the merged shares added.
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 March 16, 2020 UTC