ISBC acquired by CFG

Q&A
1

Hi there,

May I know how should I update the recent acquisition on my counter?
I have 900 ISBC shares.

“Investors shareholders will receive 0.297 of a share of CFG common stock and $1.46 in cash for each share of Investors they own”

Reference: Citizens Financial Group, Inc. Announces Agreement to Acquire Investors Bancorp, Inc. | Business Wire.

Regards,
Keh

2

Hi Keh,

Thank you for reaching out.

I would suggest the following.

“Investors shareholders will receive 0.297 of a share of CFG common stock and $1.46 in cash for each share of Investors they own” => Treat this as a dividend payout. Is there a guidance of how much they value each shares of CFG? If not, I suggest to value CFG simply at the close where you are being awarded the shares.

  1. Assume a share of CFG is “$1”. So, the dividend value is $0.297 + $1.46 = $1.757.

  2. With 900 shares, you get $1.757 x 900. Create a dividend override for that https://stocks.cafe/portfolio/override

  3. Finally, create a buy transaction of 0.297 x 900 = 267.3 of CFG at price per share of “$1”. Since it is likely you would receive 267 instead of 267.3 shares, you can treat the 0.3 shares as “fees” of the transactions to balance it.

Cheers,
Evan

3

hi Evan,

Thanks.
One question, the override seems to be factor in the 30% withholding tax. Can I disable the withholding tax for this specific transaction but not the past?

Thanks.
Keh

4

btw the CFG share price received upon is $38.01/share

5

Hi Keh,

Hmm… I think the best way in this case would be to increase the override by 30% so that after factoring in, it will be the value you wanted.

Cheers,
Evan