Just check how do you adjust it in the portfolio if you happened to have Viva like me?
Here is the recap I copied from somewhere
"If you have 1,000 VIT shares, you will receive $96 in cash and 1,600 ESR-REIT Unit (the Consideration Units).
I have 30,000 units of Viva, Stockscafe has recorded $2,880 as ordinary dividend yesterday
Next:
Book a sell of Viva 30,000 @ 0.96 with $0 commission (this will realized profit for me)
Book a purchase of ESR 48,000 @0.54 with $0 commission (this will be in red based on yesterday’s closing)
On 17th VIVA was suspended at 0.905.
The closing price of ESR was 0.515.
For 1,000 VIVA you received $96 as a special dividend,
and 1,600*0.515 (ESR close) = 824 so the selling price of each VIVA share was effectively 0.824.
The 48,000 ESR shares were effectively purchased at 0.515.
So, you received $27,600 in total ($24,720 as ESR shares plus $2,880 dividend) for the 30,000 VIVA shares.
Represented by increasing your cash by $2,880 and portfolio by 48,000 ESR shares.
(I realise that it will look l ike a loss on the VIVA shares, but it is compensated by the special dividend)
If you do sell Viva 30,000 @ 0.96, you have to manually remove the dividend, if not it would be double counting.
I would do
Sell Viva 30,000 @ 0.96*0.9 = $0.864. ($0 commission) (Since you received 0.096/share=$2880 as payout already)
Buy ESR 48,000 @ $0.54 ($0 commission)
So the Viva portion would be a profit, and the ESR part would record a capital loss.
THE managers of Viva Industrial Trust (VIT) have announced a clean-up distribution per stapled security (DPS) of 1.692 Singapore cents, in line with the merger of ESR-Reit (real estate investment trust) and VIT.
Thanks dxyong! Has anyone decided finally the best way to reconcile all these points given the latest distribution? I can’t seem to add the latest distribution to the inactive stock now.
Thanks Evan. I am trying to find the inactive stock code T8B to add the special distribution but StocksCafe is not picking up this code any more. How would you recommend to add this special distribution?
For the special dividends, 1) I assume you mean the 0.096 on 4 Oct 2018? 2) If that is something that everyone should have received (assuming you hold the stock that day) then maybe I should add it to StocksCafe.
