WESTFIELD MERGER

This is a particularly complex reconstruction and you should seek professional advice from your financial adviser/accountant on your particular circumstance. It is essential that you make a copy or backup of your portfolio/s before attempting the steps outlined below.

We have detailed an example below to help you carry out the necessary adjustments.

However, if you find this too complex we have suggested a simpler method to help you with your record keeping but this will require you to supply all the necessary paperwork regarding the conversion to your accountant at tax return time. (See Simple Example)

DETAILED EXAMPLE
  1. Before the conversion takes place any tax deferred distributions for each holding in Westfield Trust (WFT), Westfield America Trust (WFA) and Westfield Holdings (WSH) should be used to reduce Capital Gains Tax (CGT) cost base
    2.

e.g. say for WFT units

Aquisition Date
Units
Cost
Tax Def

Total Original

Cost Base

Total Cost Base

After Tax Def
Cap Return
15/6/84
500
$1.00*
$0.90
N/A*
N/A
N/A
20/4/90
1000
$1.65
$0.25
$1650.00
$1400.00
$250 (1000 x 0.25)
10/10/03
800
$3.40
$0.10
$2720.00
$2640.00
$80 (800 x 0.10)

Once you have calculated the capital return applicable for each of your holdings, enter this into STEX Porfolio Manager - Transactions > Adjust Data for Bonus Issues, Splits, Etc.> Capital Return and be careful to select the right transaction/s for the particular capital return .

  • N/A - the cost base of any purchases before September 1985 are not affected
  1. Once the tax deferred capital return has been completed, a share split is entered for WFT and/or WFA at the ratio of .28:1 or .15:1 respectively. To do this click on Transactions > Adjust Data for Bonus Issues, Splits, Etc.> Reconstruction (Split for STEX Portoflio Manager 7 & earlier). So for the WFT example above the amount of restructured units using the ratio .28 : 1 will be
    2. Aquisition Date

    Units

    (Old)

    Units

    (New)
    15/6/84
    500
    140
    20/4/90
    1000
    280
    10/10/03
    800
    224
    Total New Shares 644
    644

    There is no split to be done for WSH unitholders

  2. After the split in 2 above, there is a further reduction of the CGT cost base by a stapling distribution of $1.01 for both WFT and WFA - Transactions > Adjust Data for Bonus Issues, Splits, Etc.> Capital Return ie. in the example above this will be 644 x $1.01 a capital return of $650.44 which will result in new CGT cost base as shown below
    3. Aquisition Date

    Units

    (New)

    CGT Cost

    new Units
    15/6/84
    140
    $3.5714* N/A
    20/4/90
    280
    $3.99
    10/10/03
    224
    $10.7757

    For WSH unit holders there is a capital return of $0.002 per WSH unit held

  3. Once the capital return in 3 & 4 has been done, for the WFT example, there will be a purchase of 644 new WFA units at $1.00 each and a purchase of 644 new WSH unit at 0.01 each.

    4. For WFA unit holders the purchase will be total of new WFA units after conversion x $1 for each new WFT unit and $0.01 for each new WSH unit

    For WSH unit holders the purchase will be number of units held in WSH x $0.001 for new WFT units and the number of units held in WSH x $0.001 for new WFA shares

  4. We would recommend that once this has been done, open up the Transaction List for Equities and Dividends and edit memo section to reflect which unit is referred before doing an ASX Code change for WFA, WFT and WSH to WDC. Tools >ASX Code Change.

When entering any future distributions we recommend that you make a note in the Details section of the data entry form as to which entity the distribution relates to.

SIMPLE EXAMPLE

(All paperwork regarding the the merger should be supplied to your accountant for accurate assessment of your tax liability)

1. Enter a Sell dated 12/7/04 for each of any WFA, WFT or WSH units you may be holding. Enter a sell for these at cost price, so that there is no profit or loss and no capital gain. Make a note in the details section that this refers to the merger.

2. Enter a buy transaction dated 12/7/04 for Westfield Group (WDC ) for the number of units you have received for a total cost of all your sales (above in 1)

Note: This method is not accurate for capital gains purposes

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