Author Topic: Naspers (NPN) - reaching all time high?  (Read 36372 times)

Bundu

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Re: Naspers (NPN) - reaching all time high?
« Reply #75 on: June 11, 2019, 01:29:17 pm »
very quiet here...... 8)

any thoughts on the NPN/Newco split?
Take more NPN or take Newco?
Tax implications?
Last Edit: Tomorrow at 06:13:55 PM by Bundu

Moonraker

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Re: Naspers (NPN) - reaching all time high?
« Reply #76 on: June 11, 2019, 04:07:05 pm »
Quote
In terms of the proposal, shareholders will receive new Naspers M-shares as a
capitalisation issue, which do not have immediate tax liabilities. Capitalisation shares
are exempt from dividend tax, but CGT become payable whenever the shares are sold.
The circular states that the initial cost of these shares for the purposes of CGT will be
deemed to be nil, meaning that the full value of the shares will attract CGT whenever a
shareholder sells them. The M-shares are automatically replaced by NewCo shares,
which is effectively seen as two separate transactions: the sale of M-shares and the
purchase of NewCo shares

Pity about the CGT implications when opting for the M shares, but we should all have losses carried forward
to deduct from that gain. :-X  ;)
No CGT on Naspers N.

Bundu

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Re: Naspers (NPN) - reaching all time high?
« Reply #77 on: June 11, 2019, 04:43:25 pm »
thanks Moonraker  :TU:

what I find a bit weird, is that the normal NPN share should drop when Newco splits off, how come that drop is not discounted and the full value of the new shares are taxed? or am I missing something?

I think I'm gonna take the Newco shares, even if it means an immediate tax burden........  :money:
Last Edit: Tomorrow at 06:13:55 PM by Bundu

jaDEB

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Re: Naspers (NPN) - reaching all time high?
« Reply #78 on: June 12, 2019, 04:53:58 pm »
I also will take Newco option on mine.  :whistle:
jaDEB

Trust me, you get what you give - 2019