How should I handle the the upcoming separation of Endeavour Group from Woolworths Group via Demerger in my Sharesight portfolio?
Great question @David_Sharesight
To be able to complete the update in Sharesight successfully you’ll need to wait for 5 days from the listing of Endeavour Group (which I believe was yesterday) to ensure an accurate cost base. I’ve included an extract from the demerger booklet below, which explains why.
“The cost bases of the Woolworths Shares just before the Demerger should be apportioned based on the VWAP of Woolworths Shares and Endeavour Shares as traded on the ASX for the first five trading days starting from the date of commencement of trading (on a deferred settlement basis) of Endeavour Shares on the ASX."
We will be publishing specific instructions for Sharesight users that hold ASX: WOW in this thread next week. Please keep an eye out for this content and let our support team know if you have any questions next week.
Hi @Jessinv_Sharesight ,
Not to derail this thread (I can start a separate question if you prefer).
Is there a similar guide to follow for the WES and COL demerger dated 28-Nov-2018?
The guide in this case was this document, but I am unclear how to correctly enter the data in to Sharesight.
Hi @Jessinv_Sharesight . I am assuming it is now ‘next week’? Any update on how to handle the demerger?
Hi @cam ,
It certainly is. Unfortunately the cost base has still not been announced. I’d imagine due to the size of the demerger and the relevant approvals for the split it might take them a little while to confirm.
As soon as we have the relevant information we’ll be sharing instructions here and as an in-app message for all relevant Sharesight customers.
Thanks for your patience,
A more basic question: How do we enter these transactions while we await the exact details of the transaction (presuming we can edit this in the future)?
Hi all, we have published the the demerger help page.
Hi @chocbudda ,
Welcome to the community.
This page in our help centre shows you how:
Nice to have the help page but to make it complete we need Woolworths to provide an ATO approved “split” to be used to apportion the current Woolworths cost base between the Endeavour shares and Woolworths shares. The record date was 25th June 2021 and according to the holding statement the new Endeavour shares were allocated on 1st July 2021.
From the Woolworths web site:
"The basis for cost base apportionment will be formally determined by the ATO and published by the ATO as part of the final demerger tax relief class ruling. The ATO is expected to publish the ruling in early August 2021.
Once the ruling is issued by the ATO, Woolworths Group will make an announcement via the ASX and provide further information on this website to assist Woolworths Group Shareholders to determine the respective cost bases of their Woolworths Group Shares and corresponding Endeavour Group Shares ."
I used a rough split of 85% WOW and 15% EDV based on my own calc of the 5day VWAP and will update once the ruling comes through.
It looks like the class ruling (CR 2021/50) is out… will the blog post be updated?
Please refer to Cost bases for Woolworths Group and Endeavour Group Shares.
ATO Class Ruling.
Looks like the guide has been updated but @Jessinv_Sharesight there is a typo! It says use a ratio of 85.91 : 14.19 but it should say 85.81 : 14.19
Will you guys be updating the website where you lay out how to handle this demerger in a sharesight account with the cost bases updated too?
Hi all, the WOW/EDV demerger help page has been updated.
If you have previously added EDV into your portfolio, you just need to do Step 1-9 & Step 14.
I’ve read the WOW/EDV Demerger Guide - all OK so far.
But the ATO ruling states that, for CGT purposes, the date of acquisition of the EDV shares should be the same as for the corresponding WOW shares. This obviously affects the CGT Discount if I were to sell my EDV shares tomorrow. But Sharesight doesn’t seem to have this info wrt the EDV shares and (presumably) needs it for the Unrealised CGT report.
Am I missing something here?
Many thanks for the clear instructions for the WOW-EDV demerger - you made it so easy.
I acquired my WOW shares well over a year ago. When I ran an Unrealised Capital Gains report it correctly showed EDV under Long Term (discounted) Capital Gains so correct for me.
Hi Ricky. Many thanks!
I note that the ‘opening balance’ trade (on the EDV side) posts a purchase to Xero but in the cost base reduction (in the WOW side) there is no option to post to Xero.
Given there has been no change in the combined cost base before and after the split (and no payment) I chose to untick the ‘post to xero’ in the open balance trade.