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BHP BIL demerger of S32.

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G_V_V
Super Contributor
Anyone know how the demerger effects ones portfolio? Should the BIL shares cost price not be reduced by the S32 cost price? And why does the S32 cost price keep changing to the current price, therefore reflecting a nil profit/loss for the S32 shares? The total movement profit/loss for all the shares is therefore always out and also the total cost price of all the shares.
8 REPLIES 8
G_V_V
Super Contributor
Should the BIL shares not be treated like a capital repayment of the S32 shares and then the S32 shares entered at the fair value, which is also the capital repayment of the BIL shares?
G_V_V
Super Contributor
Alternatively is the value of the S32 shares treated as a special dividend from BIL, in which case when will the S32 cost price be fixed in the portfolio?
SimonPB
Valued Contributor
S32 was paid as a dividend so no chagne to BIL cost price
G_V_V
Super Contributor
Thanks Simon, Do you know why the S32 cost price of the shares in the portfolio keeps changing to the same amount of the current price therefore keeping the profit/loss at nil?
G_V_V
Super Contributor
Also if it was a dividend why was dividend tax not deducted, or is the one BHPBILL share for one S32 share already tax deducted.
CHATTYCHAT
Super Contributor
Dividend does come into play, but seemingly this is info to be reflected in the tax pack 2016Feb. Would want to view responses on this topic.
samoa
Super Contributor
Choppies doing the same.Why?
CHATTYCHAT
Super Contributor
Shareholders are advised that the Billiton (BIL) demerger by way of an in-specie dividend of South32 shares will yield no cost apportionment. There is no split of the base cost for CGT purposes and South African shareholders will be deemed to have acquired South32 shares at the market value on the Distribution Date