Overview

On 18 October 2016, Tatts and Tabcorp entered into a Merger Implement Deed under which Tabcorp proposed to acquire all the issued shares in Tatts. The scheme was approved and became effective on 13 December 2017. On the Scheme Implementation Date of 22 December 2017, Tabcorp paid eligible Tatts shareholders the following Scheme Consideration for each Tatts share held:

• scrip consideration of 0.80 New Tabcorp Shares, and
• cash consideration of $0.265

The cash consideration was $0.425 and was reduced by a fully franked Tatts special dividend of $0.16 which was paid to the Tatts shareholders on 19 December 2017.

This special dividend is available in Class and should have been generated as part of the generate income process.

If you have applied transitional CGT relief on 30 June 2017 or prior for any of the Tatts Group (TTS) shares and have processed this corporate action prior to 28 September 2018, you need to reprocess the event so the deferred notional gains amount will be split accordingly.

Cost Base Proportion

Where partial scrip for scrip roll-over is chosen, the cost base of Tatts attributable to the new Tabcorp shares is worked out as follows:

• Cost base of Tatts for the scrip component: (Market value of 0.8 Tabcorp shares at the scheme implementation date) / (Market value of 0.8 Tabcorp shares at the scheme implementation date + cash received)
  = $5.59 * 0.8 / ($5.59 * 0.8 + 0.265)
  = 94.405742%

• Cost base of Tatts for the cash component: cash received / (Market value of 0.8 Tabcorp share received at the scheme implementation date + cash received)
  = $0.265 / ($5.59 * 0.8 + 0.265)
  = 5.594258%

Market value of Tabcorp shares Class used in this calculation was the TAH closing price as at the scheme implementation date, 22 December 2017, being $5.59

Choose scrip for scrip rollover relief

To process this Corporate Action at Fund Level, refer to our User Guide on the Corporate Actions Console.

Choose without scrip for scrip rollover relief

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

1. Acquire the Tabcorp shares (TAH) at the closing price of $5.59 for each share on the implementation date, i.e. 22 December 2017.
   

   Navigate to Fund Level > Transactions > Investment - Sell > Listed security disposal

2. Sell all the Tatts Group (TTS) shares on the implementation date, i.e. 22 December 2017.
3. Capital proceeds equal to the market value of the Tabcorp shares (TAH) on the implementation date plus the cash consideration.
   

   Navigate to Fund Level > Transactions > Match Transactions
   

4. Match the two transactions above with the cash received.