Keppel O&M merge with SCM

[evankoh]

@inverseinverse

For myself, I had entered a manual dividend (Override on Dividends tab) with ex date on 23 Feb and pay date on 1 March of $2.5594 (19.1 * $0.134).

Then “buy” 19.1 SembMarine on 1 Mar at $0.134.

Update: See this post → Sembcorp Marine acquisition of Keppel O&M – StocksCafe Blog

There are two ways to handle this spin-off. I will let user decide which is best.

a) Treat it as a scrip dividend style

1. Create a dividend override for Keppel (SGX:BN4) worth 2.5594 per share with ExDate 24 Feb and PayDate 1 Mar (How to Override Dividends - StocksCafe Academy)
2. Create a buy transaction of 19.1 shares of SembMarine (SGX:S51) on 1 March at 0.134 for every share of Keppel (SGX:BN4) that you own.

b) Treat it as a stock split style

1. Sell Keppel at the market value on 22 Feb (i.e. price = 7.34).
2. Buy Sembcrop at market value of 22 Feb (i.e. price = 0.134, shares = actual number of shares you received) on 23 Feb.
3. Buy Keppel back at the market value you sold (i.e. price = 7.34) at minus the market value of Sembcrop (shares received x 0.134 or 19.1 x 0.134 = 2.5594 assuming you actually got 19.1 because it is likely different due to rounding) on 23 Feb. Hence, if you actually got 19.1, then price = 7.34 - 2.5594 = 4.7806.