On 20 March 2019 The Walt Disney Company (NYSE:DIS) and Twenty-First Century Fox, Inc. (“21CF”) (NASDAQ: TFCFA, TFCF) announced that Disney’s acquisition of 21CF has become effective.
Under the merger agreement:
- The per share value is $USD 51.572626
- Each 21CF share receives $USD 51.572626 in cash or
- 0.4517 shares of Disney common stock
Prior to the merger, on 19 March 2019, 0.263183 of each share of 21CF common stock was exchanged for 1/3 of one share of FOX common stock of the same class.
How to process in Simple Fund 360
The corporate action can be processed in 2 steps:
- The demerger of 21CF (TFCFA.NDQ) to Fox (FOXA.NDQ)
- The merger of 21CF (TFCFA.NDQ) and Disney (DIS.NYE)
Both the demerger and merger can be processed automatically using the corporate action screen.
Example: Fund has 1500 units of 21CF, the adjusted cost base is $150,075
In Corporate Action screen, the following notifications will appear for 21CF (TFCFA.NDQ)
Step 1: Process the demerger
The following information will be pre-filled in Demerger Process Page:
|
Corporate Action Date |
19 March 2019 |
|
Ex-Balance Date |
19 March 2019 |
|
New Security |
FOXA.NDQ |
|
Unit in Head security after demerger |
1,105.2255( 1,500 * 0.736817) |
|
Unit in demerged security |
500 (1,500 / 3 ) - any Fraction disregarded |
|
Head security cost base percentage |
73.68% |
|
Demerged security cost base percentage |
26.32% |
Note:
- We populate FOXA.NDQ by default. If the fund received FOX.NDQ (Class B share), please select FOX.NDQ from “Select New Security” drop down
- If you have not created an investment account for FOXA, please click on New Investment Account to create a new account and refresh the Process Page.
Review and Process the Corporate Action
Step 2: Process the Merger
Option 1: Share Consideration (default option)
The following information will be pre-filled by default in Merger Process Page:
|
Corporate Action Date |
20 March 2019 |
|
Ex-Balance Date |
20 March 2019 |
|
New Security |
DIS.NYE |
|
Units in new investment |
499 (1,105.2255 * 0.4517) - fraction disregarded |
|
Total market value of new shares |
80, 531.26 (499 * 161.3853)** |
|
Scrip-for-Scrip option |
YES by default, if it is not applicable for the fund please switch the toggle to NO, capital gain / loss will be calculated. |
** The market value per share is calculated using the volume weighted average trading price of a share of Disney common stock on the New York Stock Exchange over the fifteen consecutive trading day period ending on (and including) March 15, 2019 ($114.1801)and RBA rate on 20/03/2019 (AUD/USD = 0.7075). The Total Market Value field is editable if you wish to change this amount.
Option 2: Cash consideration
If the fund elects to receive cash, please clear the following fields:
- Units in New Investment
- Total Market Value of Shares Received
Enter the Total Cash Proceeds as: $72.894171 * Units on hand (we use RBA exchange rate at 20/03/2019)
Review the corporate action summary for estimated capital gain /loss then Process.
Step 3: Process any fractional entitlement received in cash.
- Record any foreign income and foreign tax credit in the linked 23900 account of 21CF investment account
- If you want to record this amount as a capital gain, please add a linked income account 23800 to the investment account and record the amount as a capital gain tax component.
.