Background

On 22 December 2023, the in-specie distribution of TMK shares and TMK Listed Options to shareholders of Talon Energy Limited (TPD) was completed. Each eligible Talon shareholder received 1.511 TMK shares and 0.755 TMKOB listed options for each TPD share held. The market value of the TMK shares and TMKOB options received in respect of each TPD share was $0.013598.

On 27 December 2023, Strike Energy Limited (STX) acquired all the issued shares in Talon Energy Limited through a scheme of arrangement, with an offer of 0.4828 STX shares for every TPD share.

How to process in Class 

Worked Example: 10,000 units of Talon Energy Limited shares were held before the payment date. Shareholder received 15,110 TMK shares and 7,550 TMKOB options.

Step 1: Process the in-specie distribution using Class' automation

Navigate to Fund level > Investments > Browse corporate actions

1. Click to 'Action' the TPD Spinoff
   
   
   
   
2. Click Update Parcelling
3. Click Create Target Holdings to create TMK holding account, if necessary
4. Click Submit
   
   
   

   Step 2: Process the Capital Return

   Navigate to Fund level > Transactions > Investment - Corporate action > Capital return

5. Process the Capital Return event to reduce the cost base of 15,110 TMK shares
6. Enter Record Date 22 December 2023
7. Enter Payment Date 22 December 2023
8. Enter Participating Quantity as the total number of TMK shares received from the in-specie distribution
9. The payment amount is calculated as $0.00151 per TPD share multiplied by 10,000 TPD shares
10. Click Submit
    
    
    

    Step 3: Process the acquisition of TMKOB options

    Navigate to Fund level > Transactions > Investment - Buy > Listed security acquisition

11. Purchase 7,550 TMKOB options on 22 December 2023 with the value of Capital Return processed.
12. Match off the Capital Return in step 2 and the acquisition of the options in step 3.

    Step 4: Process the scrip takeover using Class' automation

    Navigate to Fund level > Investments > Browse corporate actions

13. Click to ‘Action’ the 27/12/2023 TPD Scrip Takeover
    
    
14. Click Update Parcelling
15. Click Create Target to create Strike Energy holding account, if necessary
16. Select With Rollover Relief or Without Rollover Relief
17. Click Submit
    
    

Reference

• ATO Class ruling: CR 2024/49
• ASX Announcement: In-specie Distribution Complete
• ASX Announcement: Implementation of Scheme