How to handle Tabcorp (TAH) and The Lottery Corporation (TLC) demerger

Tabcorp (TAH) and The Lottery Corporation (TLC) demerger which was finalised on May 23, 2022.

For each Tabcorp (TAH:ASX) share, you will receive 1 The Lottery Corporation (TLC:ASX) share as part of the demerger.

Follow the steps below for how to handle this in Sharesight:
1 – Click on Tabcorp, TAH on the Portfolio Overview Page, to go to the Individual Holding Page.

2 – Click ‘Enter a new Trade or Adjustment’.

3 – On the pop-up window, select ‘Adjust Cost Base’ from the transaction type dropdown.

Based on the Demerger Scheme Effective, set the:

Date of trade’: 25 May 2022

Demerger calculator’: Set the ratio to 17.76 : 82.24

Cost Base Reduction’: Enter the amount given in the Demerger Calculator.

Example If TAH cost base as of the Scheme date is $42,950, Cost Base reduction is $35,322.08 ($42,950 x 82.24%).

Take note of the Cost Base Reduction amount

4 – Comment: Tab Corp and The Lottery corporation demerger. The Scheme Record Date is on 1 June 2022.

5 – ‘Choose a file’: to help keep your records in order, you can attach the Lottery Corporation Demerger Scheme Effective letter.

6 – Click ‘Save this trade’.

7 – Click ‘Add or Import Holdings’.

8 – On the left hand side of the page, search for The Lottery Corporation or TLC to locate the holding.

9 – Select ‘Opening Balance’.

10 – Select ‘Opening Balance Date’ as 25 May 2022.

11 – Input ‘Cost base’: Use the Cost Base Reduction amount from Wesfarmers.

Example If TAH cost base as of the Scheme date is $42,950, Cost Base reduction is $35,322.08 ($42,950 x 82.24%).

12 – Input ‘Quantity’ as 1 The Lottery Corporation share to every 1 Tabcorp share.

12 – Click ‘Save this holding’.

We’ve created a detailed article below on how to handle this in Sharesight: