Do we take the last TAH closing price at implementation date...

Do we take the last TAH closing price at implementation date being our new cost base for the issued shares?

No, I believe this is the mud map to work out the new cost base for the TAH holdings.

Assume 5000 Tatts shares @ $3.00 = Total $15,000

Apply capital return @ 26.5 cps

5000 x .265 = $ 1325.00

Subtract the cap return from total cost.

$15,000 - 1325.00 = $ 13,625.00

Next work out the number of TAH shares @ .80 per TATTS share

5000 X .80 = 4000 shares

Now divide the total cost after the cap return by the number of TAH shares

$ 13625.00 / 4000 = $ 3.40625

You should now have 4000 Tabcorp shares in your spreadsheet at an average price of $ 3.40625 and a total cost of $ 13,625.00

This does not take into account brokerage etc , but if you work back from the current total cost of the Tatts holding the maths should work the same.


This is not tax advice, I am not an accountant or tax lawyer. If unsure seek professional advice, I know I will be to double check my calculations.