How to handle Webjet Travel Group & Webjet Group demerger
Summary
On September 30, 2024, ASX-listed online travel agency Webjet decides to split their global B2B travel distribution business and the business-to-consumer side (booking flights, hotel accommodation, cars, motorhomes etc) into two ASX listed entities. Both will be listed in the ASX market under WEB.ASX and WJL.ASX.
As part of the demerger, Webjet shareholders receive one new Web Group (WJL.ASX) every Web Travel Group (WEB.ASX) share held.
Sharesight makes it easy to handle corporate actions (even complicated demergers) and track the capital gains tax implications. You can maintain an accurate record of your portfolio performance by tracking the Webjet Travel Group (WEB) and Webjet Group (WJL) demerger on Sharesight.
Tax implications
Demerger rollover
Demerger roll-over is available for this demerger.
Regardless of whether you choose demerger roll-over or not demerger roll-over, you must recalculate the first element of the cost base and reduced cost base of your WEB Travel shares, and calculate the first element of the cost base and reduced cost base of the corresponding Webjet B2C shares you acquired under the demerger. Please refer to FAQ for more information
You can track your WEB and WJL cost base in Sharesight and run the CGT Report to calculate your tax liability when you sell WEB or WJL.
How to record this in Sharesight
1 – Click on Web Travel Group or WEB on the Portfolio Overview Page, to go to the Individual Holding Page.
2 – Under Trades & Income tab, select Click Add trade or adjustment.
3 – Select trade type: Adjust Cost Base
Based on the ATO class ruling, set the:
4 – Date of trade: 30/09/2024
5 – Demerger calculator: Set the ratio to 88.64 : 11.36
6 – Cost Base Reduction: Amount should auto populate.
Example If WEB cost base as of the Scheme date is $10,000, Cost Base reduction is $1,136 ($10,000 x 11.36%).
Take note of the Cost Base Reduction amount
7 – Save trade
8 – Click Add Investment > Individually add trade on the Portfolio Overview Page
9 – Search WJL.ASX
10 – Trade type: Opening Balance
13 – Opening Balance Date: 30/09/2024
14 – Total Cost base: Use the Cost Base Reduction amount from WEB.
15 – Quantity: 1 WJL for every WEB share you hold
16 – Save trade
Example Own 1000 WEB as of the Scheme date - received 1000 WJL Shares from the demerger
FAQ
What is the Webjet demerger?
On September 30, 2024, the Board of Directors approved a plan to separate Webjet into two independent, investment-grade, publicly listed companies: WEB Travel Group and Webjet B2C.
What is the Webjet Travel Group?
Trading under WEB.ASX, this business comprises WebBeds, a global B2B travel distribution business. WebBeds connects hotels and travel products suppliers with its global network of travel trade buyers.
What is the Webjet B2C?
Webjet B2C (trading under WJL.ASX) enables consumers to book flights, hotel accommodation, cars, motorhomes and other travel related products. It comprises two key businesses of Webjet OTA (online travel agency) - an Australia and New Zealand Focused consumer digital travel business and GoSee - a global motorhome and car rental ecommerce site. Webjet B2C also owns Trip Ninja, a technology company providing solutions for complex travel itineraries.
Why did Web Travel Group spin off its B2C business?
To improve the ability for each business to pursue independent strategic priorities and growth agenda. Existing and new shareholders can also decide their level of investments in WEB Travel Group and Webjet B2C.
What is the cost base allocation ratio?
According to the official announcement, the cost base allocation is 88.64% to Web Travel Group (WEB.ASX) and 11.36% to Web Group Bow (WEB.ASX) common share.
Do I need to take any action?
You do not need to take any action. Your broker should automatically allocate the new Web Group shares to your account.
What do I receive for my shares?
You will receive one new Web Group (WJL.ASX) every Web Travel Group (WEB.ASX) share held.
Where can I find the official announcement and details?
You can find the demerger booklet and ATO class ruling 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 November 25, 2024 UTC