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Vox takeover

Reply
Not applicable
The big question: If the deal goes through at 45 c given transaction costs you would come out at about 44c/43c. So it would make sence to sell at 43c (current mkt price) Alternativly if the deal doesn't go through and they improve the bid you could make more. Question do you hold out or do you sell?
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8 REPLIES 8
Not applicable
or the deal doesn't go through and they decide not to put in another bid.
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Preston
Super Contributor
I think but i stand corrected it does make a difference from a tax point of view i.e trading income vs capital gain due to corporate action. I do STAND CORRECTED.
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AJT
Super Contributor
I hink you are correct..
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SimonPB
Valued Contributor
I don't .. I think SARS takes a sale as a sale, forced or not .. BUT what they have done in the past with MSM and SBK where you forced sold a portion of a holding, you could rebuy without incuring a tax event ..
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SimonPB
Valued Contributor
not with standing of course I am a tax payer, not a tax expert ..
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THRESHOLD
Super Contributor
SARS will treat the sale as a tax event and IT vs CGT will depend mainly on the length of time that you held the stock. You may claim that you were "forced-out" but SARS will hold that the primary evidence is that the position was cleared early. You must prove otherwise. SARS may even hold that you bought for the buyout as a speculative position on a rumour (true for most of us.) If you took the matter to court - your IPSE DIXIT would hold sway as to establishing your intent. Unless you bought now to take advantage of arbitrage that is.
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THRESHOLD
Super Contributor
BUT you can (and should) contact SARS for their position on this event.
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rsalie
Super Contributor
Most (if not all) of the major shareholders have voted in favour of the Scheme (see SENS) so I don't think this will not go through since it only needs 75% of the votes to pass. I think Lereko owns 20 odd % of the shares already.
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