How to handle the BHP and Woodside mergerContent also available for New Zealand, Australian, Canadian, and UK tax entities.
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)
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 - In the Franked Amount section, 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
Last modified on June 15, 2022 UTC