Tatts Group Limited entered into a scheme of arrangement in December 2017 resulting in the transfer of shares in Tatts Group (Tatts Shares) for shares in Tabcorp Holdings Limited (Tabcorp). This scheme was approved by the Supreme Court of Victoria on 13 December 2017.
On 22 December, holders of Tatts Shares received 0.8 fully paid ordinary shares in Tabcorp for each Tatt Share. In accordance with the Scheme, fractional entitlements to Tabcorp Shares were rounded to the nearest whole number, with fractions of 0.5 or more being rounded up.
Shareholders should have received a notice listing the number of Tatts Shares held on the record date and the number of new Tabcorp Shares Issued.
To enter this transaction in your Mclowd records:
Choose the CORPORATE ACTIONS button to enter a RETURN OF CAPITAL for your Tatts Group shares.
Via the Corporate Actions screen, record a DISPOSAL of your Tatts Group shares, entering the number of shares surrendered and their value as at 22 December 2017.
- Select Tatts Group in the Select Asset field.
- In the Received Amount field, enter the TOTAL value of your Tatts Group shares. This should be shown on a “Scheme of Arrangement – Cash Consideration Statement” sent to your from TABCORP, in the Total Payment column, and next to Amount Deposited.
- In the Per unit return on capital field, enter the current value of each share held, as at December 22,2017. This should be the shown in the Amount per Security column on your ”Scheme of Arrangement – Cash Consideration Statement” .
- Select any available bank account, noting that the transaction will not show on your bank statement but will reconcile via a reversing acquisition entry.
- Press SAVE to record the details of the disposal.
Record an Acquisition of TABCORP shares in the quantity issued (or calculated at the rate of 0.8 fully paid TABCORP shares for each Tatt share, adjusted for fractional entitlements as per the notation above).
Select ADD NEW ASSET from the ASSETS tab.
- Select the Account (fund or individual member – depending if the Tatts shares were held by the fund or were a segregated asset.
- Select Direct Equities – Domestic.
- Select New Holding (unless the holder already holds shares in TABCORP)
- Enter the Stock Code TAH – TABCORP Holdings Limited
- Enter the purchase date – 22 December 2017
- Enter the number of TABCORP Shares received (shown under New TABCORP Shares Issued on your ”Transaction Confirmation Statement” received from Tabcorp
- Enter the Total Cost (the same amount entered above as the amount received for your Tatts Group shares.
- Ensure the bank account selected is the same account selected in the Return of Capital form above.
- SAVE the acquisition.
NOTE: If you are concerned about transactions like this recording deposits and payments that do not actually go through the bank and will not show on your bank statements, you may wish to create a DUMMY BANK account for use when recording transactions of this type. Entries like this do not obstruct bank reconciliation because the deposit and payment should be equal, but they do cause entries to show in your bank records that didn’t actually occur.