Hi - interloper alert!!I don't follow Resmed but I do hold...

Hi - interloper alert!!

I don't follow Resmed but I do hold shares in the lithium producer, Allkem. It is proposed that Allkem merge with an American outfit with the proposal being that the merged entity will trade as shares (stocks) in the US and as CDIs on the ASX. From what I understand this is exactly the set-up with Resmed.

So my request to contributors to the RMD threads is could you share your views of any advantages, disadvantages, and traps in owning ASX CDIs compared to ASX shares compared to US stocks. Also can you swap your ASX traded CDIs for shares that are traded on the US bourse? I am happy if you don't refer to Allkem on what after all is a RMD thread but rather keep it on topic by focusing on the pros and cons in the case of Resmed. The other option would be for you to post on the AKE threads. I am sure folks there would not complain as everyone with AKE shares are going through a fast learning curve as our vote is next month. If anyone knows of any discussion/ information papers on CDIs a link would also be appreciated.

My main concerns are that CDI holders will not have a direct vote in company resolutions so that those holding US traded stocks gain defacto control of the company, that dividends are unlikely to be paid to CDIs (not that any are likely anytime soon) and that the tax arrangements are more complicated than were the merged company to trade on the ASX in the form of shares (as BHP does which is listed on two bourses).

If anyone thinks this request is too far off-topic by all means request it to be modded.

Cheers and thanks in advance.