How to handle KLA-Tencor Acquisition of Orbotech
Sharesight makes it easy for investors to handle corporate actions (even complicated mergers) and track the capital gains tax implications. The benefit of using Sharesight to track the KLA-Tencor’s (KLAC:NASDAQ) acquisition of Orbotech (ORBK:NASDAQ) also ensures that you maintain an accurate record of your portfolio performance.
1 – Click on Orbotech, ORBK on the Portfolio Overview Page, to go to the Individual Holding Page.
2 – Click ‘Enter a new Trade or Adjustment’.
3 – On the pop-up window, select ‘Return of Capital’ from the transaction type dropdown.
Based on the Investor Relations announcement, set the:
4 – ‘Paid On Date’ : 20 February 2019
5 – ‘Date of trade’: 20 February 2019
6 – ‘Capital Returns Value’: $38.86 x number of ORBK shares held on the Record Date
7 – ‘Comment’: KLA-Tencor acquisition of Orbotech. Record date is 20 February 2019.
8 – Choose a file: to help keep your records in order, you can attach the Investor Relations Announcement Letter.
9 – Click ‘Save this trade’ button.
Example
If you owned 1000 shares of ORBK as of the Record Date, the Capital Return Value: $38,860 = 1000 ORBK shares x $38.86.
10 – On the Orbotech Ltd Individual Holding Page, click on ‘Holding Settings’ tab.
11 – Click on ‘Merge this holding’ button.
12 – On the Merge Holding pop-up window, set the ‘Date of Merge’ as 20 February 2019.
13 – Type KLA-Tencor or KLAC in the search field and select KLAC:NASDAQ KLA-Tencor from the dropdown list.
14 – Type in the ‘Quantity’ field: 0.25 x ORBK shares held on the Record Date (Orbotech shareholders receive 0.25 KLA-Tencor share for every ORBK share)
Example If you owned 1000 ORBK as of the record date, the quantity is 250 = 1000 x 0.25 KLAC shares.
15 – In the ‘Comments’ field, type a note for your reference of why this acquisition happened.
16 – Click ‘Save changes’.
The KLA-Tencor Individual Holding Page will load with the merged shares added.
The Orbotech Ltd holding will still appear on your Portfolio Overview Page when you have enabled the Open & Closed Positions setting (include sold holding).
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 16, 2022 UTC