Telstra (TLS) announced the successful completion of its off-market share buy-back of approximately $1.25 billion of capital from shareholders or 282.17m shares, representing 2.31% of the issued capital of Telstra.
The ex-entitlement date was 18 August 2016 and buy-back completion date was 3 October 2016.
The buy-back proceeds consisted of two components:
- franked dividend component
- capital component.
Participating shareholders were paid a franked dividend of $2.65 (dividend component) for each Telstra share disposed of in the Telstra buy-back. The deemed capital proceeds were $2.70, being the $1.78 capital component, plus $0.92, which was the amount by which the CGT value exceeded the buy-back price.
An SMSF shareholder tendered 5,510 Telstra shares to participate in the buy-back, of which 1,613 shares were bought back.
Class defaults the payment date to be the implementation/CGT (effective) date. The payment date can be amended to match against the client's buyback statement, i.e. 11 Oct 2016.
The populated amount from the automated corporate action should match the client's statement. Refer to below sample Buy-Back Tender Consideration Statement.