How to handle the acquisition of Mawson Gold on Southern Cross Gold (ASX: SXG)
Summary
Mawson Gold Limited (MAW.AX) has announced the acquisition of Southern Cross Gold (SXG.AX) by way of a scheme of arrangement. The scheme involves a 1-for-1 share exchange, where SXG shareholders will receive 1 Mawson Gold share for each SXG share held. The record date for the exchange is 18 December 2024.
- Record date: 18 December 2024
- Acquisition detail: 1 Mawson Gold share (ASX: SX2) for every Southern Cross Gold (ASX: SXG) held
Tax implications
Capital gain
Working out your net capital gain or net capital loss for the 2024 year
This acquisition is likely a taxable event. However, SXG shareholders who make a capital gain on their SXG shares may be eligible for scrip for scrip rollover relief.
This means they can defer paying capital gains tax on the disposal of their SXG shares if they receive Mawson CDIs or new Mawson 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 SXG.ASX
2 - Select Edit holding tab
3 - Select Merge this holding
4 - Date of Merger: 18 December 2024
5 - New holding: Search: SX2.ASX
6 - Quantity: 1 SX2 share for every SXG share
7 - Select Save changes
FAQ
What happens to my shares after the acquisition and do I need to take any action?
Your SXG shares will be cancelled and replaced with an equal number of Mawson Gold CDI shares, traded under SX2.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?
You will receive one SX2.ASX share (in the form of a CDI) for every SXG.ASX share you hold.
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 SXG 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 and run the CGT Report 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 SXG, 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