How to handle the Sunrise Communications spinoff from Liberty Global
Summary
On November 12, 2024, Liberty Global completed the spinoff of its Swiss telecom unit, Sunrise Communications AG. By creating a standalone public entity for Sunrise, Liberty Global expects to foster focused operations and attract investors aligned with each company’s distinct markets.
- Record date: 4 November 2024
- Spinoff details:Class A and Class B Share Distribution Shareholders will receive Sunrise ADSs in the following structure:
a. 1 Sunrise Class A ADS for every 5 Liberty Global Class A or Class C share
b. 2 Sunrise Class B ADSs for every 1 Liberty Global Class B share
How to handle this in Sharesight
Update cost base
1 – On the overview page, select LBTYA.NASDAQ
2 - Select Trades & Income tab
3 - Select Add trade or adjustment
4 - Trade date: 12 November 2024
5 - Trade type: Adjust cost base
6 - Demerger calculator: This holding: 56.829 : The new holding: 43.171
7 - Select Save trade
8 - Take note of the adjust cost base amount
Add Sunrise Communications
1 - On the overview page, select Add Investment > Individually add trade
2 - Search SNRE.NASDAQ
3 - Trade date: 12 November, 2024
4 - Trade type: Opening balance
5 - Total Cost Base USD$: Enter adjusted cost base amount from LBTYA.NASDAQ
6 - Quantity: 0.2 x total LBTYA.NASDAQ shares
7 - Select Save trade
FAQ
Will the spin-off affect my tax status?
The distribution of Sunrise ADSs is expected to be tax-free for U.S. and Swiss shareholders, ensuring the transaction is efficient from a tax perspective.
Can I convert my Sunrise ADSs into regular Sunrise shares?
Yes, beginning November 14, 2024, you can cancel your Sunrise ADSs and trade the underlying shares directly on the SIX Swiss Exchange. For the first three months, you can do so without incurring cancellation fees.
What is the cost base allocation ratio?
According to the official announcement, the cost base allocation is 56.829 % to LBTYA.NASDAQ and 43.171% to SNRE.NASDAQ.
Do I need to take any action?
You do not need to take any action. Your broker should automatically allocate the new TC Energy and South Bow common shares to your account.
What do I receive for my shares?
You will receive 1 Sunrise Class A ADS for every 5 Liberty Global Class A or Class C shares and 2 Sunrise Class B ADSs for every 1 Liberty Global Class B share
Where can I find the official announcement and details?
You can find more details here and 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