westfield restructure

John Campbell

I am using Reckon/Quicken Personal Plus 2013 and was wanting advice as to how best to enter the restructure of Westfield WDC and WRT shares into the new WFD and SCG share structure.

My first pass was to rename WDC to WFD and WRT to SCG, which retained the share price history for both, however the capital base is more complex.

I think the restructure was in 2 phases, where the WDC and WRT shares were merged then WFD and SCG came from the merger.

I would like the end result to give a correct report of the capital base to be applied to the two new share groups.

Any ideas on the best approach would be appreciated.

John

Jason Jiao

Hi John,

Welcome to Reckon Community.

This bits of information may help you to start with.

1, WDC Allocation – each eligible WDC securityholder will receive 1.246 SCG securities and 1 WFD security for every 1 WDC security held as at record date.

a) Remove your WDC Shares from Enter Transaction as Remove - Share Removed
b) Record your SCG Security from Enter Transaction as Add - Share Added
c) Record your WFD Security from Enter Transaction as Add - Share Added

2. WRT Allocation - eacg security-holder will receive 0.918 shares in Scentre Group and a cash payment of roughly $285
a) Record your SCG shares from Enter Transaction as Corporate Acquistions (Stock for Stock)
b) Record your cash payments as Record an Income Event.
 

Reckon strongly advises users to refer to documentation from Westfield and to consult
their Accountant or Financial Services Advisor in respect of their particular holdings of
Westfield shares and the necessary transactions to realign accounting records for their
holdings.

You can find out our Reckon Accredited Partners from the following website.

http://home.reckon.com.au/support/Home/ReckonSupport/FindAReckonAccreditedPartner.aspx

Regards,
Jason

Bob TGR

So how does this process set the acquisition value of the new shares properly?

John Campbell

It doesn't !

I think the best approach is as I outlined, then followed by a capital transfer between the two shares. I have done the first part, which retained the historical share prices, but need to identify the amount of capital to transfer, so that the historical capital value of the new shares is correct. Westfield provided a letter on 31 July describing this, which I am yet to review.

The approach of removing shares is to be avoided, as this will loose the price history of WDC, creating a notional capital gains event, which must be avoided.

Bob TGR

Thanks John, looking closer at the glossy from Westfield Group - it says that a factsheet about the costbase will be issued at the end of August.
I have generally found the Reckon corporate actions to be not quite right when applied to most Australian restructures.