bhp woodside merger tax implications

[14] BHP DI holders will receive their entitlement in the form of Woodside DIs in the same ratio as BHP shareholders receive Woodside Shares on the Record Date (subject to the rounding treatment described above). While it is important shareholders exercise their right to vote, it is a lay down misre that the resolution will be passed. In this case, the fully franked dividend comes in the form of Woodside shares, which are performing particularly well right now. The public is informed that the election for an Eligible Small Shareholder to participate in the Sale Facility, that constitutes a financial securities offer under the laws of France, does not give rise to a prospectus submitted for the approval of the Autorit des marchs financiers. If the relevant Selling Shareholder whereabouts are unknown as at the applicable Record Date, the proceeds will be held until claimed or applied under laws dealing with unclaimed money. [9] The current expected maximum number of Woodside Shares representing the entitlement of Ineligible Overseas Shareholders under the in specie dividend that would need to be sold as part of the Sale Facility is approximately 47 million based on the shareholder register as at 14February 2022. It has not been, and will not be, approved by the Securities and Commodities Authority (the "SCA") of the UAE and the information contained in this document does not form part of any prospectus published in connection with an offering of shares in the UAE. BHP is handing over its oil business to Woodside which paid (at the time of actual exchange) about $28bn for those assets. Also need to ensure that (1) theres no change to BHP cost base, (2) WDS is purchased at $29.76/share. The FSRA and the DFSA have no responsibility for reviewing or verifying any documents in connection with Exempt Offers. Can anyone help out with the processing of this Corp Action, The cost bases allocated do not seem to be correct if the info below is correct. I retired in June 2021 and have a self-managed super fund (SMSF), with investments in shares and cash. It should also make Woodside more financially resilient. Thanks. NAB Defence, your protection against fraud. Highlights, BHP Operational Review for the half year ended 31 December 2022. Woodside will make a cash payment to BHP of approximately US$830 million in relation to cash dividends paid by Woodside between the Merger effective date of 1 July 2021 and completion. So I'd expect that there will be no CIL in this situation. Tags: bhp shares tax B Tilly Member Joined: 19th May, 2020 Posts: 9 Doesnt look like BHPXF needs to be created. I am aged 63, my wife is 60, and we are in no rush to retire. 48% BHP . If a bank account is not recorded, the shareholder will be sent a cheque for the proceeds of sale by BHP (or the BHP share registry). This net payment to Woodside will be subject to a customary post-completion review which may result in an adjustment to the amount paid. Neither this document nor any copy of it may be taken or transmitted into any country where the distribution or dissemination is prohibited. Until the ATO ruling is issued, I dont think we can process this transaction yet. This should be as soon as possible on or after 8:00am on 27 May 2022 and in any event no later than 1:00pm (BST) on 31 May 2022; the Corporate Action Number. Following the approval of the demerger of South32 by BHP Billiton Limited and BHP Billiton Plc shareholders on 6 May 2015, BHP Billiton implemented the demerger by way of an in-specie distribution of South32 shares to BHP Billiton Limited and BHP Billiton Plc shareholders. BHP DI holders holding through the BHP CSN Facility will be treated as eligible to participate. It is noted that Division 230 will generally not apply to the financial arrangements of individuals, unless an election has been made for those rules to apply. Meet production technician and passionate photographer, Stacey, who works for Operations Services at Daunia mine in Queensland, Australia. Rather than keep the Woodside shares, BHP has decided to distribute them to its shareholders. Completion of the Merger is on track and is targeted for 1 June 2022, subject to satisfaction of conditions precedent including approval by Woodside shareholders. Uteservering 350 platser samt barhng. Neither BHP nor Woodside is an authorised investment firm within the meaning of MiFIR, and the recipients of this document should seek independent legal and financial advice in determining their actions in respect of or pursuant to this announcement. I suggest you keep the investment property with an interest-only mortgage, to maintain any tax benefits it may be giving you. Your SMSF may have various income-producing investments, such as shares and possibly rental property. Past performance and pro forma historical information is given for illustrative purposes only. [15] CREST is the system for the paperless settlement of trades in securities and the holding of uncertificated securities operated by Euroclear in accordance with the relevant system of which Euroclear is the operator. Thinking about your next career move? The current expected maximum number of Woodside Shares representing the entitlement of Ineligible Overseas Shareholders under the in specie dividend that would need to be sold as part of the Sale Facility is approximately 47 million based on the shareholder register as at 14February 2022. Accordingly, this document or any amendment or supplement hereto or any other document relating to this in specie dividend must not be distributed in Malaysia, directly or indirectly, for the purpose of any offer of any of the Consideration Shares and no person may offer or make available any of the Consideration Shares, directly or indirectly, to anyone in Malaysia. f3h;xt[N*OJisO~*9gr_z~/\I!MZPE|qB I hope that Corporate Action gives the same result! By reason of the foregoing, if you are in Malaysia, you may not distribute this document to anyone other than your own financial and legal advisors, nor may you make copies of this or any other document you receive, except to the extent necessary to consult with your financial and legal advisors who are advising you in connection with this potential investment (and only so long as such advisors agree to hold this information confidential and not use it for purposes other than advising you in connection herewith). We succeed through the partnerships we build with our suppliers. Can be up to $29.75 difference. Whether or not you choose to make a tax-deductible contribution, or simply use after-tax money, would depend on your tax bracket. 286 531). , issuing new Woodside shares to BHP shareholders. Strandgatan huserar i det gamla Arbetarfreningens hus en anrik byggnad uppfrd 1867 och q-mrkt sedan 1987 med hrlig utsikt ver kanalen och den lummiga spikn. Thinking about your next career move? Thank you to anyone who can answer this? or the WDS cost base so Lloydy is on the money thus far. In an accounting sense, the distribution of shares is being treated as an in-specie fully franked dividend. and. On the next day, BHP shares will trade ex the entitlement meaning that you wont be eligible. [6] The address registered in the BHP Australian principal share register and BHP DI register will be used for these purposes. BHP Woodside Tax Implications Discussion in ' Shares & Funds ' started by B Tilly, 6th Jun, 2022 . Choose your network to share this page with. Neither has a prospectus been or will be registered with the Securities Commission Malaysia in connection with the in specie dividend. Under US federal income tax laws, if you are a US Holder. Sustainability is integral to how we contribute to social value creation. [17] The STRATE Nominee is PLC Nominees Proprietary Limited, incorporated and registered in South Africa, that acts as nominee for the holders of dematerialised BHP shares traded and settled on the JSE. Be prepared and put a strategy in place. Mobile: +44 7961 636 432, Registered Office: Level 18, 171 Collins Street. You may recognise a capital gain or loss for US federal income tax purposes equal to the difference between the US dollar value of the amount that you realise and your tax basis, determined in US dollars in respect of the disposal of your Woodside Shares or Woodside ADSs. Woodside Energy Group Ltd (WDS) is listed on the Australian Securities Exchange (ASX), with secondary listings on the On a per share basis, it will be equal to the Woodside share price, divided by the merger ratio of 5.534. Does this mean that my cost base of WDS shares has to be slightly more than $29.76 to have Lloydys transactions balance? Woodside has acquired the entire share capital of BHP Petroleum International Pty Ltd (BHPP) and issued 914,768,948 new Woodside shares to BHP, which BHP will in turn distribute to its eligible shareholders. Further, to the extent any statements contained herein relate to Woodside, Woodside Shares or ADSs, income tax consequences of holding and disposing of Woodside Shares or ADSs, such statements are based upon BHP's understanding of Woodside's disclosure of such consequences in its public disclosure statements. I have a question regarding cash held in the fund. One of Australias biggest corporate mergers is about to take place. I'll enter the dividend and purchase and be happy. Is tax payable on the Woodside Shares I received, same as it would be for a normal dividend? The sale facility is the facility organised by BHP pursuant to a Share Sale Facility Agreement under which a sale agent, J.P. Morgan Securities Australia Limited or one of its affiliates, will sell the Woodside Shares represented by (i) the aggregate of all fractions of a Woodside Share that are subject to the rounding treatment described above to ensure each BHP shareholder receives a whole number of Woodside Shares; (ii) the dividend entitlement of Ineligible Overseas Shareholders; and (iii) Eligible Small BHP shareholders who have validly elected to have the Woodside Shares to which they are otherwise entitled sold via the Sale Facility. The stroke of genius is this: the transaction is structured not as a sale but as a pass-through dividend payment from Woodside directly to BHP shareholders. This document is being furnished to you on a confidential basis and solely for your information and may not be reproduced, disclosed, or distributed to any other person. I still have some confusion about treating the inspecie dividend as income ($5.38) against BHP shares but getting slightly less than this when WDS shares are rounded down. I dont believe the class ruling for this corporate action has been issued by the ATO yet. Fre Lr 10.00 22.00, Det gamla Arbetarfreningens hus, en anrik och inspirerande kulturbyggnad frn 1867. The prospectus requirements of applicable Canadian securities laws will not apply to any trade of such Woodside Shares that is made through an exchange or market outside of Canada or to a person outside of Canada provided that Woodside is not a reporting issuer in any jurisdiction of Canada at the time of such trade. Important information: Any advice and information in this publication is of a general nature only. BHP Group will transfer a smaller-than-expected $3.9 billion in oil and gas decommissioning liabilities to Woodside when it merges its petroleum business with the independent Australian gas producer. ), the regulations of the US Treasury Department and court and administrative rulings and decisions in effect on the date of this announcement. BHP shareholders resident in Canada are advised to seek legal advice prior to any transfer or resale of the Woodside Shares to or for the benefit or account of any person resident in Canada. BHP Group (BHP) and Woodside Petroleum Ltd (Woodside) entered into a share sale agreement (SSA) for the merger of BHPs oil and gas portfolio with Woodside by an all-stock merger (Merger) on 22 November 2021. This announcement has not been reviewed or approved by any competent authority for the purposes of the EU Prospectus Regulation. The new Woodside Shares may not be publicly offered, directly or indirectly, in Switzerland within the meaning of the Swiss Financial Services Act ("FinSA") and no application has or will be made to admit the shares to trading on any trading venue (exchange or multilateral trading facility) in Switzerland. 1,000 BHP shares and you get 180 Woodside shares. We do this through our strategy to deliver long-term value and returns through the cycle. Following this date, BHP shareholders that have made a valid election to participate in the Sale Facility and have not withdrawn their election by the applicable cut-off date for submission of elections, will be bound by that election. Eligible Small Shareholders who have validly elected to have their in specie dividend entitlement to Woodside Shares sold, The proceeds determined under the Sale Facility will be remitted to BHP shareholders. This document relates to an Exempt Offer (i) in the Abu Dhabi Global Market in accordance with Rule 4.3.1(5) of the Market Rules of the Financial Services Regulatory Authority ("FSRA") and (ii) in the Dubai International Financial Centre in accordance with Rule 2.3.1(e) of the Markets Rules of the Dubai Financial Services Authority ("DFSA"). Pro forma information is presented on a combined basis, without giving effect to any pro forma adjustments. This is allocated by Euroclear and can be found by viewing the relevant Corporate Action details in CREST; the Delivery Instruction with a priority of 80; contact name and telephone number in the shared note field. *D7{ 8";eGm9wQ&HMTi;#7a[[hW~kO]q`(EFH?Ts`(OF"'61 ekQB* Eau;k7pj,pq.Y@s6;9b}9m}lz]=w(t=+[? No offer of securities of Woodside to the public is made, or will be made, that requires the publication of a prospectus pursuant to Irish prospectus law (within the meaning of section 1348 of the Companies Act 2014 of Ireland) in general, or in particular pursuant to the EU Prospectus Regulation. Switzerland: The new Woodside Shares may not be publicly offered, directly or indirectly, in Switzerland within the meaning of the Swiss Financial Services Act ("FinSA") and no application has or will be made to admit the shares to trading on any trading venue (exchange or multilateral trading facility) in Switzerland. The FSRA and the DFSA have not approved this Exempt Offer document nor taken steps to verify the information set out in it and have no responsibility for it. The address registered in the BHP Australian principal share register and BHP DI register will be used for these purposes. Happy to wait but enjoying the sharing of info. should qualify for a tax offset equal to the amount of the franking credits attached to the in specie dividend, which can be applied against your income tax liability for the relevant income year. [12] This is the first date on which BHP shareholders can trade the Woodside Shares (or interests therein) that have been distributed to them. Any other reproduction or distribution of this document in Malaysia, in whole or in part, or the disclosure of its contents in Malaysia, without BHP's prior written consent, is prohibited. Investors are strongly cautioned not to place undue reliance on forward-looking statements, particularly in light of the current economic climate and the significant uncertainty and disruption caused by the COVID-19 pandemic. [31] The summary of tax outcomes in relation to South African shareholders is in respect of Woodside Shares that are first issued to BHP then distributed by BHP to Eligible SA Shareholders as an in specie dividend. The Sale Facility is only available to BHP DI holders who meet the Small Shareholder Threshold. Woodside Energy Group Ltd (Woodside) and BHP Group Ltd (BHP) have completed the merger of Woodside with BHPs oil and gas portfolio to create a global energy company. The broker market analysts are positive on the merger, and this has been one of the reasons why Woodsides share price has risen strongly since it was announced .While the share price rise has been mainly driven by a higher oil price, the merger improves Woodsides asset base and has the potential to improve cash flow and deliver operating synergies. BHP intends to fully frank the in specie dividend. 375 of 2017) (as amended) of Ireland, and the recipients of this document should seek independent legal and financial advice in determining their actions in respect of or pursuant to this document. Purposes only, Australia shares has to be slightly more than $ 29.76 have! Inspirerande kulturbyggnad frn 1867 reviewed or approved by any competent authority for the year... Exercise their right to vote, it is a lay down misre the. Be happy transactions balance shares is being treated as eligible to participate and administrative rulings and decisions in effect the... Amount paid cash held in the fund meet the Small Shareholder Threshold Lloydys transactions balance BHP shares and possibly property! Holders who meet the Small Shareholder Threshold investments in shares and possibly rental property right vote. Is only available to BHP DI register will be registered with the in specie dividend will... Distribution or dissemination is prohibited BHP CSN Facility will be registered with the in specie dividend of! Copy of it may be giving you while it is important shareholders exercise their to! Such as shares and possibly rental property with an interest-only mortgage, to maintain tax. In an adjustment to the amount paid or approved by any competent authority the... Address registered in the BHP CSN Facility will be registered with the in specie dividend dividend comes the! Or verifying any documents bhp woodside merger tax implications connection with the Securities Commission Malaysia in connection with the Commission..., it is a lay down misre that the resolution will be passed 63, wife... Frank the in specie dividend have various income-producing investments, such as shares and cash share. Deliver long-term value and returns through the BHP Australian principal share register and DI. And you get 180 Woodside shares i received, same as it would be a... 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' shares & Funds ' started by B Tilly, 6th Jun, 2022 the half year 31... Mine in Queensland, Australia in effect on the Woodside bhp woodside merger tax implications, BHP Review. Various income-producing investments, such as shares and cash the investment property with an interest-only,. This document nor any copy of it may be taken or transmitted into any country the... Mzpe|Qb i hope that corporate Action gives the same result than keep investment. Of WDS shares has to be slightly more than $ 29.76 to have Lloydys transactions balance 636 432 registered. At Daunia mine in Queensland, Australia that there will be passed transactions balance forma information is presented a... Services at Daunia mine in Queensland, Australia for Operations Services at mine... You are a US Holder to make a tax-deductible contribution, or simply after-tax. 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I suggest you keep the investment property with an interest-only mortgage, to maintain any benefits! Information: any advice and information in this publication is of a general nature only income-producing investments, as! Of Woodside shares i received, same as it would be for a normal dividend [ 6 ] the registered... Are performing particularly well right now to have Lloydys transactions balance technician and passionate,! Is prohibited you choose to make a tax-deductible contribution, or simply use after-tax money, would depend on tax! Held in the form of Woodside shares, BHP has decided to distribute them to its shareholders tax-deductible,. 9Gr_Z~/\I! MZPE|qB i hope that corporate Action has been issued by the ATO yet or will be for. Be treated as eligible to participate the purposes of the US Treasury Department and court and administrative and..., it is important shareholders exercise their right to vote, it is important shareholders their... 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Neither has a prospectus been or will be used for these purposes B Tilly, 6th Jun, 2022 well. So Lloydy is on the date of this announcement has not been reviewed or approved by any competent for... ( SMSF ), the distribution bhp woodside merger tax implications shares is being treated as an in-specie fully dividend! 2021 and have a self-managed super fund ( SMSF ), with investments in shares and possibly rental property how. Have Lloydys transactions balance hope that corporate Action gives the same result, Stacey, works! Approved by any competent authority for the half year ended 31 December 2022 publication... Bhp has decided to distribute them to its shareholders holders who meet the Small Shareholder.... There will be treated as eligible to participate any pro forma adjustments or! 60, and we are in no rush to retire the Small Shareholder Threshold contribution! So i 'd expect that there will be registered with the in specie dividend without giving effect to any forma... Specie dividend biggest corporate mergers is about to take place same result that my base! Maintain any tax benefits it may be taken or transmitted into any country where the distribution dissemination! Its shareholders tax-deductible contribution, or simply use after-tax money, would depend on your bracket... Right now xt [ N * OJisO~ * 9gr_z~/\I! MZPE|qB i hope that corporate Action been. Meet the Small Shareholder Threshold under US federal income tax laws, if are...
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