Hi Annep.Here is my Notes to help me get my head around the...

Hi Annep.
Here is my Notes to help me get my head around the share distribution.
I am not licensed to give financial advice nor do I have financial qualifications.
There is a worked example.

BHP - WPL Merger and Share distribution

Completion of the Merger is targeted for 1 June 2022

The dividend is expected to be paid on 1 June 2022

The dividend is expected to be fully franked.

BHP shareholders are entitled to:

One WPL share for each 5.5340 BHP shares they own on 26 May 2022.

Note:

The in specie dividend will have no impact on the existing cost base of your BHP shares.

Those who hold 1,000 BHP shares or less (Small Shareholder Threshold); May participate in the sale facility. This also means they may not.

Worked Example:

Say I hold 950 BHP shares on 26 May 2022.

Therefor I am entitled to 171 WPL shares.

950 divided by 5.5340 rounded down.

Because I hold less than 1000 BHP there are 2 choices:

1. Sell the WPL shares in the sale facility.

2 .Have them credited to the same account as BHP holding.

If you take The WPL shares they will be paid as a fully franked dividend on 1 June 2022 and included in the 2021-2022 Tax year.

What is the money value. In AUD. It depends on WPL share Price on 1 June 2022

Say WPL share price on 1 June is say =$31.10

Then Dividend per BHP share $31.10/5.5340

Dividend per BHP share is about =$5.62

Franking credit per BHP share about =$2.41

But you get 171 WPL shares

Total Dividend 171 X $31.10 =$5318.10

Plus franking credit(fully franked) =$2279.18

Tax return will show:

Dividend Income received = $7597.28

Tax paid ( franking credit) =$2279.18

Note these are Aussie dollars. BHP reports in USD

If you elect to have the shares sold in the sale facility the cash result should be about the same, because the sale facility may/will likely have the same price as the market on 1 June.

Further Note.

BHP should pay 3 dividends this year .

28 March 2022 Already paid

1 June 2022. WPL share distribution

21 September2022 FINAL Div may be bigger than 28 March 2022