How to handle Wesfarmers and Coles demerger

Content also available for tax entities or on our global site.

Sharesight makes it easy for investors to handle corporate actions (even complicated demergers) and track the capital gains tax implications. The benefit of using Sharesight to track the Wesfarmers (WES) and Coles (COL) demerger also ensures that you maintain an accurate record of your portfolio performance.

Please note this is based on currently available information. We will include further changes as new information becomes available.

1 – Click on Wesfarmers, WES on the Portfolio Overview Page, to go to the Individual Holding Page.

Screen Shot 2018-11-29 at 13.11.48

2 – Click ‘Enter a new Trade or Adjustment’.

Screen Shot 2018-11-29 at 13.12.12

3 – On the pop-up window, select ‘Adjust Cost Base’ from the transaction type dropdown.

Screen Shot 2018-11-29 at 13.12.25

Based on the Demerger Scheme Booklet, set the:

4 – ‘Date of trade’: 21 November 2018

5 – ‘Demerger calculator’: Set the ratio to 72 : 28

6 – ‘Cost Base Reduction’: Enter the amount given in the Demerger Calculator.

Example If WES cost base as of the Scheme date is $42,950, Cost Base reduction is $12,026 ($42,950 x 28%).

Take note of the Cost Base Reduction amount

7 – Comment: Wesfarmers and Coles demerger. The Scheme Record Date is on 22 November 2018.

8 – ‘Choose a file’: to help keep your records in order, you can attach the Coles Demerger Scheme Effective letter.

9 – Click ‘Save this trade’.

10 – Click ‘Add or Import Holdings’.

Screen Shot 2018-11-29 at 13.12.36

11 – On the left hand side of the page, search for Coles or COL to locate the holding.

Screen Shot 2018-11-29 at 13.12.48

12 – Select ‘Opening Balance’.

13 – Select ‘Opening Balance Date’ as 22 November 2018.

14 – Input ‘Cost base’: Use the Cost Base Reduction amount from Wesfarmers.

Example If WES cost base as of the Scheme date is $42,950, Cost Base reduction is $12,026 ($42,950 x 28%).

15 – Input ‘Quantity’ as 1 Coles share to every 1 Wesfarmers share.

16 – Click ‘Save this holding’.

Example Own 1000 WES as of the Scheme date - received 1000 Coles Shares from the demerger

Screen Shot 2018-11-29 at 13.13.05

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 29, 2018 UTC