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:
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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.)
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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.
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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.
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Enter a sell transaction for ND8U on 24 April 2020 at consideration price of SGD 1.68
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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.
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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.
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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.)
You can remove dividends from this page => https://stocks.cafe/personal/portfolio/xcollected?label_id=-1&grouped=0&filter=&sort=exdesc
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Go to above page on desktop
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Find ND8U
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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
Please click on the “Add Collected Dividend” there to add dividends.
Cheers,
Evan
I havent been been keeping track. Does it mean my previous share bought at Fraser’s commercial trust are all forfeited?