BHP Group Limited (formerly BHP Billiton Limited, ASX code: BHP) completed an off-market buy-back of approximately 265.8 million shares worth A$7.3 billion of capital from shareholders. This represented 8.3% of the issued share capital of BHP.
The ex-entitlement date was 6 November 2018 and the shares were taken to have been disposed of for CGT purposes on 17 December 2018, being the buy-back completion date. The cash payment date was 24 December 2018.
The buy-back price received by participating shareholders comprised of two components:
- a dividend component, and
- a capital component
Participating shareholders were paid a fully franked dividend of $27.26 (dividend component) for each BHP share disposed of in the BHP buy-back. The deemed capital proceeds were $4.92 per share, being the $0.38 capital component, plus $4.54, being the amount by which the tax value for CGT purposes ($32.18) exceeded the buy-back price ($27.64).
BHP shareholders had to choose whether to participate in the buy-back, hence this corporate action is optional. The amount subject to the buy-back varied from fund to fund.
Class users are required to process this corporate action at the fund level.
The populated amount should match the Trustees' statement.