Background

On 6 February 2025, eligible shareholders received an in-specie distribution of 7.2021 Myer Holdings Limited (MYR) shares for each Premier Investments Limited (PMV) share held.

The distribution consists of a $5.65 fully franked dividend and a $0.81 capital reduction (Para 7 and 19 of CR 2025/21).

The cost base of each MYR share is $0.89 (Para 26 of CR 2025/21).

How to process in Class 

Worked Example: A shareholder holding 1,000 PMV shares on record date received 7,202 MYR shares.

Dividend: $5.65 x 1,000 PMV shares = $5,650

Capital Reduction: $0.81 x 1,000 PMV shares = $810

Cost base of MYR shares: $0.89 * 7,202 MYR shares = $6,409.78

Rounding difference: ($5,650 + $810) – $6,409.78 = $50.22, which will be recorded as a non-deductible expense.

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

Navigate to Fund level > Investments > Browse corporate actions

1. Click to 'Action' the PMV Spinoff
   
   
    
2. Click Update Parcelling
3. Click Create Target Holdings to create PMVXE holding account, if necessary

4. Review the Capital Amount, Franked Amount and Franking Credit and update if needed, then click Submit
   
   

   Step 2: Process the code change corporate action

5. Click to 'Action' the PMVXE Code Change
6. Click Update Parcelling
7. Click Create Target

8. Click Submit

   Step 3: Process the Capital Return

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

9. Process the Capital Return event to reduce the cost base of 7,202 MYR shares
10. Enter the Record Date as 6 February 2025
11. Enter the Payment Date as 6 February 2025
12. Enter Participating Quantity as the total number of MYR shares received from the in-specie distribution
13. Enter the Payment Amount of $50.22

14. Click Submit

    Step 4: Process the non-deductible investment expense

    Navigate to Fund level > Transactions > Fund expenses > General investment expense

15. Select the expense type 'Non-Deductible Expense' from the drop-down list
16. Investment Account is Myer Holdings Limited (MYR)
17. Enter the Expense Date as 6 February 2025
18. Enter the Gross Amount of $50.22
19. Change the GST Amount to $0

20. Click Submit

    Step 5: Match off (3) and (4)

Reference

• ATO Class ruling: CR 2025/21
• ASX Announcement: Completion of In-specie Distribution