Firstly, I can't blame you for not having any trust in the AOE (now Dart) board. They have done us in no uncertain ways.
Now for the remarks you have made about the $400million dollars placed upon Dart, as you have been told by someone in AOE. That, if I am correct would place a value (depending on how many shares the Directors and Management will have accrued via converting options etc.) of around the 80 to 90 cents to each DART share. But, that is only a guess. That, IMHO, considering what went on with the sp manipulation, shorting etc. could also be the reason that many instos and the NAB were accumulating shares. That was to get/accumulate as many Dart shares as possible for nearly zero cost. These people, as we all know, are in the knows of things long before we do, and they would have gone all out to get the Demerger and the Acquisition Schemes through.
As for the Capital Gains treatment of what we will be getting, my views are that:
1) Providing, and subject to the ATO ruling that is in favour, the value applied to the Dart shares, should be Capital Gains Tax Exempt and that value would become the cost base for the Dart shares for future purposes.
2) IMHO, that value of the Dart Shares, will have to be deducted from the original cost base of your AOE shares, and the difference between that new achieved cost base, and the $4.70 that we will be receiving will become subject to the Capital Gains Tax Provision.
Of course the ones that held the shares for longer than twelve (12) months, will become entitled to get a 50% deduction of the total Taxable Profits (CAPITAL GAINS TAX RELIEF PROVISION). For the ones who held for less that twelve months, the full Tax will apply.
I hope this will help.
Please DYOR.
Buddy
AOE Price at posting:
$4.99 Sentiment: Hold Disclosure: Held
