How to handle the Orocobre (ASX:ORE)/Galaxy (ASX:GXY) merger?

I have received a notification that, on 25 August 2021, eligible Galaxy shareholders have been issued 0.569 Orocobre shares for each Galaxy share held. These shares were to commence trading on the ASX on 26 August 2021.

There is no indication in the advice as to the value of each Orocobre share on allotment.

Can anyone help me understand how I record this in Sharesight please?

Also what will be my Orocobre cost base if I sell these shares? The price I paid for the Galaxy shares? Or the value of the Orocobre shares on allotment? If the latter, how do I determine this?

Am I considered to have held these shares from the Galaxy purchase date or the merger date?

Many thanks for your help.

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Hi @Krisserlis and welcome to the forum! :tada:

With this acquisition, you’ll just use the merge tool to convert Galaxy to Orocobre for the new units your receive (0.569 shares for each Galaxy share). The cost-base & value will default to the value at the date of the merger in Sharesight (we work all this out for you).

You can edit this merge transaction in the future if Orocobre comes out with more information on the value of the merger.

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Thanks so much, Jack! I’ll look for the emerge tool.

Hi Both, I had the same question. I have used the merge tool but my holding is showing a lose? My average shar price for ORE is significantly lower than the current price with means I should be showing a gain. Did I do something wrong…or is there a tutorial for the merge function? Thanks.

Hi! I’m not sure what you mean by your “average share price” for ORE because I can’t see how to determine that in my sharesight view. My sharesight has ORE at $9.21 and -0.73% (loss) since “first purchase”, which is the merge date of 25 August 2021. Sharesight merge gave me a cost base of $7.956 for ORE after the merge. I don’t know if any of this helps you?