DGR

13.3%

1.3¢ dgr global limited

DGR discount to Solgold, page-10

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20/04/17

11:12

Post #: 24162945
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Originally posted by swannmex ↑

I was able to get through to the company Secretary and did recieve a prompt reply. My question was in the event of a cash buyout of SOLG what would the tax consequences look like for DGR Global. Here is his reply:

"Essentially, in the situation you described, DGR Global would pay 30% corporate tax on the “profit” made on any sale of SolGold shares (proceeds less cost of investment).

In Australia, tax paid by companies gives rise to “franking credits” which are passed on to shareholders as a tax credit when the company pays a dividend. This is a system to essentially avoid double-taxation of the same underlying profit (once in the hands of the company and again in the hands of the shareholder). Accordingly, franking credits are “valued” by the investment community, as they can give rise to tax refunds in some circumstances and for some investors – particularly for superannuation fund (US = pension fund) investors.

As such, the effect of DGR having to pay tax on its uplifted investments is a factor, but in my view it wouldn’t account for the full discount being applied by the market.

When I say the market “values” franking credits, i don’t mean they mathematically model it, just that a company paying franked dividends is seen as an attractive investment."

#############################################################################################

I also suggested that DGR Global step up their Investor Relations game and have someone answer the emails sent to the email address provided on their website.

He agreed and is looking into where those email have gone and how they fell through the cracks.

Hope that helps.

Expand

Good question Swan. I have an even better one, that i wont ask the company as i know they wont give a straight answer. Here it is:

In the event of a cash buyout of SOLG, what % of the proceeds (after tax) will be distributed to DGR shareholders?

DGR Price at posting: 14.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 1.3¢		Change -0.002(13.3%)		Mkt cap ! $13.56M

Open	High	Low	Value	Volume
1.4¢	1.4¢	1.3¢	$38.94K	2.967M

Buyers (Bids)

No.	Vol.	Price($)
4	981216	1.2¢

Sellers (Offers)

Price($)	Vol.	No.
1.4¢	268000	1

View Market Depth

No.	Vol.	Price($)
4	981216	0.012
4	918000	0.011
3	1900000	0.010
2	533000	0.009
2	260000	0.008

Price($)	Vol.	No.
0.014	268000	1
0.015	722000	3
0.016	600000	2
0.017	1131250	3
0.018	1111963	3

Last trade - 15.08pm 16/08/2024 (20 minute delay)

DGR (ASX) Chart

DGR discount to Solgold, page-10

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DGR discount to Solgold, page-10

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