How do I process the Macquarie Group in-specie distribution of Sydney Airport shares?

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Reckon FAQs
Reckon FAQs Reckon Staff Posts: 357 Reckon Staff
edited August 2016 in Reckon Accounts (Desktop)
Recently Macquarie Group relinquished its share holdings in Sydney Airport by giving its shareholders Sydney Airport shares directly.  

The formula was 1 Sydney Airport share (SYD) for 1 Macquarie Group share (MQG).

The transfer was funded by:
  1. Capital Reduction in MQG of $2.5737 per share;
  2. Special Dividend of $1.1563 per share;
  3. SYD shares were valued at $3.73 (closing price on 10/1/2014)Date of transfer was 13/1/2014.
Here are the transactions you will need to process in Accounts Personal (Plus and Home&Business).

Firstly, you should check with your accountant on your Capital Gains status in regards to your MQG holdings, and your capital gains status on your new holding of SYD.

This guide is written without regard to capital gains status.  You may have to change the dates these transactions are carried out to preserve any relevant capital gains status.  

Secondly, you should refer to documentation sent you by Macquarie Group in relation to your specific holdings.


Follow these steps:

Transaction 1:  Receive 'Return of capital' on MQG shares.
  1. Tran type:  Return of Capital
  2. Security:  Macquarie Group (MQG)
  3. Date: 13/1/2014
  4. Use Cash....  From this account's cash balance (will increase Cash Balance of this brokerage account).
  5. Price Paid:  $2.5737 per share
Transaction 2:  Receive 'Special dividend' on MQG shares.
  1. Tran Type:  Record an Income Event
  2. Security:  Macquarie Group (MQG)
  3. Date:  13/1/2014
  4. Transfer Account:  leave blank (will increase Cash Balance of this brokerage account).
  5. Price Paid:  $1.1563 per share.
Transaction 3:  Buy SYD shares
  1. Tran Type:  Buy - Shares Bought
  2. Security:  Sydney Airport (SYD)
  3. Date:  13/1/2014
  4. Use Cash....  From this account's cash balance (will reduce Cash Balance of this brokerage account).
  5. Price Paid:  $3.73 per share.
Your cost base for your MQG shares will be reduced by $2.5737 per share, you will show a dividend return of $1.1563 per share and a new share SYD.


regards,
John

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