Merger of Frasers Logistics & Industrial Trust (SGX:BUOU) AND Frasers Commercial Trust (SGX:ND8U)

I was asked about the how to handle the Merger of Frasers Logistics & Industrial Trust (SGX:BUOU) AND Frasers Commercial Trust (SGX:ND8U) (Official Announcement) in StocksCafe today.

My understanding is that every 1 share of ND8U will give you 1.233 shares of BUOU and SGD 0.151.

This is what I propose:

1. I have added a dividend with value of SGD 0.151 with ExDate 15 April 2020 and PayDate 24 April 2020 for ND8U => https://stocks.cafe/stock/dividend/ND8U/?type=xdetails
(This is system-wide, so you do not have to do this.)

2. Enter a sell transaction for ND8U on or after 15 April 2020 at cost price (i.e. the price you bought ND8U) so that your P&L for ND8U would be 0.

3. Enter a buy transaction fo BUOU on or after 15 April 2020 at cost price of ND8U / 1.233 so that the total price for BUOU would be what you paid for when you bought ND8U.

Example: Assume you purchased 1,000 shares of ND8U previously (say in Jan 2020) for SGD 1 per share. In step 2, you would enter a sell transaction for ND8U with price = 1 and shares = 1000. And in step 3, you would enter a buy transaction for BUOU for price = 1/1.233 = 0.811 and shares = 1233.

Of course, there are other ways to account for this. This is just what I prefer. Happy to hear how you are accounting for this.

Cheers,
Evan

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Hi Evan,

Here’s how I do it.

1. Enter a sell transaction for ND8U on 24 April 2020 at consideration price of SGD 1.68

2. Note the value of sales transaction. Subtract from this value the absolute cash consideration received from the sales (SGD 0.151 x no of ND8U units held). Note the resulting value.

3. Divide the resulting value from Step 2 by the no. of new BUOU units received (either calculate 1 unit of ND8U = 1.233 units of BUOU or check your CDP account) to get cost price.

4. Enter a buy transaction for BUOU on 24 April 2020 at cost price from Step 3.

Example: Assume you purchased 1,000 shares of ND8U previously.
In step 1, you would enter a sell transaction for ND8U with price = 1.68 and shares = 1000.
In step 2, the resulting value from sales will be 1680 - 151 = 1529
In step 3, the cost price will be 1529/1233 = 1.2401.
And in step 4, you would enter a buy transaction for BUOU for price = 1.2401 and shares = 1233.

FYI, there is a Clean-Up Distribution of 2.7692 Singapore cents per FCOT Unit for the period from 1 January 2020 to 14 April 2020. Refer here: https://fcot.frasersproperty.com/newsroom/20200428_231407_ND8U_B9YEQSFLTDH0N2PH.1.pdf

By the way, how can I reverse this transaction from my portfolio? I do not consider this payout from sales as dividend.

Blockquote

I have added a dividend with value of SGD 0.151 with ExDate 15 April 2020 and PayDate 24 April 2020 for ND8U => https://stocks.cafe/stock/dividend/ND8U/?type=xdetails
(This is system-wide, so you do not have to do this.)

1. Go to above page on desktop

2. Find ND8U

3. Click on the “Remove” link

Hi Evan,

I followed the above instructions to remove the dividend (SGD 0.151).

However, with that, somehow the clean-up distribution of 2.7692 Singapore cents was also removed.

How do I add back this as dividends manually?

Thanks.

Hi,

You can manage your dividend overrides here => https://stocks.cafe/personal/portfolio/xoverride?label_id=-1