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:
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.)
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.
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.