Entering the BHP in-specie dividend
What do I put for the
Step 5 - In the Franking Credit section, enter the franked amount (units held x $2.30) is the amount of BHP shares i have now x $2.30 or the new WDS shares I have bit confused.
6 - Click ‘Save New Payment’ to add this to your holding
Just like to point out some factual errors in the referenced instructions: How to handle the BHP and Woodside merger | Sharesight Australia Help
“On May 19th, 2022, Woodside (WDS:ASX) announced that it had approved to be acquired by BHP Group Ltd (BHP:ASX) effective by June 1st, 2022.”
This is not correct, it is a “merger of BHP’s oil and gas portfolio with Woodside Energy Group Limited (Woodside) by an all-stock merger”.
“This in-specie dividend … will be $5.38 AUD per share in BHP with $2.30 AUD to be fully franked.”
Actually the in-specie dividend will be approximately $5.38, it will differ once the rounding of WDS share allocation is taken into account, similarly for the franking credits.
Under “Entering the BHP in-specie dividend”, steps 4 & 5 are not correct, as these values will only provide approximate dividend amount, you need to refer to actual dividend statement from BHP, or use actual number of WDS shares allocated to calculate the dividend.
For example, consider shareholder has 60 BHP shares. Using the numbers from steps 4 & 5 gives:
Franked dividend: 60 x $5.38 = $322.80
Franking credits: 60 x $2.30 = $138.00
These are not correct!
Correct values are:
WDS shares allocated: 60 / 5.5340 = 10.84, rounded => 10.
Therefore franked dividend: 10 x $29.76 = $297.60,
with franking credits: $127.54.
It’s for the BHP shares, if you’ve received a statement from BHP regarding the in-specie payment enter in the components as per the statement.