How to handle TPG Vodafone Merger & Tuas Spin-off

Sharesight makes it easy for investors to handle corporate actions (even complicated mergers and spin-offs) and track the capital gains tax implications.

The benefit of using Sharesight to track the TPG Telecom (TPG) and Vodafone (VHA) merger and Tuas (TUA) spin-off also ensures that you maintain an accurate record of your portfolio performance.

Summary

On 30 August 2018, TPG and VHA announced that they had entered into a Scheme Implementation Deed under which the companies agreed a proposed merger of equals to establish Australia’s leading challenger full-service telecommunications provider. Eligible TPG shareholders will receive:

• A special dividend of $0.516 per share.
• One Tuas Limited Shares (TUA) for every two TPM shares held, issued by way of a non-cash in-specie dividend of $0.6799 per Tuas share.
• One share of the Merged Co (TPG) for each TPG (TPM) share held.

As the special dividend is automatically handled by Sharesight, below are the steps to record Tuas and TPG.

Add Tuas Limited to your portfolio:

1 - Click ‘Add New Holding’ button.

2 - Type Tuas Limited or TUA in the search field and select ‘ASX:TUA’ from the dropdown list.

3 - ‘Trade date’: ‘13 July 2020

4 - Input ‘Quantity’ as one Tuas Limited Share to every two TPM Shares.

Example

If you own 1000 TPM Shares as of the Record date - received 500 TUA Shares from the spin-off.

5 - ‘Unit/Share price’: $0.6799

6 - Click ‘Save trade’ button.

TPG Vodafone Merger:

7 - Click on TPG Telecom Limited, TPM on the Portfolio Overview Page, to go to the Individual Holding page.

8 - Click on the ‘Holding Settings’ tab.

9 - Click the ‘Merge this holding’ button.

10 - On the Merge Holding pop-up window, set the ‘Date of Merger’ as 13 July 2020.

11 - Type ‘TPG Telecom Limited’ or ‘TPG’ in the search field and select ‘ASX:TPG’ from the dropdown list.

12 - Type in the ‘Quantity’ field: (i.e one TPG Telecom Limited (TPG) share for every TPM share held on the Record Date).

Example:

If you own 1000 TPM Shares as of the Record date - received 1000 TPG Shares.

13 - Click ‘Save changes’.

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 August 19, 2021 UTC