How to handle the acquisition of Auswide Bank Ltd (ASX: ABA) by MyState Limited (ASX: MYS)
Summary
On 19 August 2024, Auswide Bank Ltd (ASX: ABA) entered into a Scheme Implementation Agreement with MyState Bank and MyState Limited (ASX: MYS) for the acquisition of all of the Auswide Bank Ltd’s issued ordinary shares by MyState Bank Limited under a scheme of arrangement (Scheme).
- Record date: 11 December 2024
- Acquisition consideration: 1.112 new MyState Limited shares for each Auswide Bank Ltd share held.
Tax implications
Capital Gains
Working out your net capital gain or net capital loss for the 2025 year
This acquisition is likely a taxable event. However, ABA shareholders who make a capital gain on their ABA shares may be eligible for scrip for scrip rollover relief.
This means they can defer paying capital gains tax on the disposal of their ABA shares if they receive MYS shares in exchange.
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.
How to handle this in Sharesight
1 – On the Overview page, select ABA.ASX
2 - Select Edit holding tab
3 - Select Merge this holding
4 - Date of Merger: 20 December 2024
5 - New holding: Search: MYS.ASX
6 - Quantity: 1.112 new MYS share for every ABA share
For example, 1,000 ABA shares gets 1112 MYS shares.
7 - Select Save changes
FAQ
What happens to my shares after the acquisition?
After the Scheme is implemented, Auswide Shareholders (other than Ineligible Foreign Shareholders) will be entitled to receive 1.112 New MyState Shares for each Auswide Share held on the Record Date.
Do I need to take any action?
Your ABA shares will be cancelled and replaced with Mystate shares, traded under MYS.ASX. You typically don’t need to take any action. Your broker should handle the share swap automatically. However, it’s always best to check the official announcement for any specific instructions.
What do I receive for my shares?
Unless you are an Ineligible Foreign Shareholder, you will receive 1.112 New MyState Shares for each Auswide Share held as at the Record Date.
If you are an Ineligible Foreign Shareholder, any New MyState Shares that you would have otherwise been entitled to will be issued to the Sale Agent and sold through the Sale Facility and your pro rata share of the Proceeds will be remitted to you.
Is this acquisition a taxable event?
This acquisition is likely a taxable event.However, you may be eligible for scrip for scrip rollover relief if you make a capital gain on your ABA shares. Consult with a tax professional for personalized advice.
You can calculate your estimated tax liability using our CGT calculator. If you have more than one trade, you can add them in [Sharesight][https://www.sharesight.com/au/] and run the [CGT Report][https://help.sharesight.com/au/capital_gains/] to calculate your tax liability.
Will Sharesight track my cost base if I choose rollover relief?
Yes, Sharesight accurately tracks your cost base. You can find your cost base information in the Historical Cost report.
If you don’t have a Sharesight account, sign up here for free, enter the date you bought ABA, follow the steps above to keep track of the cost base.
How does this acquisition affect my portfolio concentration risk?
You can find out your portfolio diversification using the Diversity report.
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 broker. We also encourage you to review the official Documents for full details.
Last modified on March 21, 2025 UTC