My broker is absolutely one of those. Their reasoning is that the consolidation has increased the value of remaining shares and therefore increased your base cost. But I just cannot get my head round how I am now showing a paper loss on my account for GSK.
I don't think that the consolidation has helped things really. They are saying the complete opposite of longterminvestor below. I don't know who to believe.
Info on how to split the costs for GSK and HLN...
https://www.gsk.com/media/9366/demerger-of-consumer-healthcare-business-to-form-the-haleon-group.pdf
Does anyone have the mythical formula for calculating our average price considering the split AND the consolidation?
I can't seem to reach a figure that makes sense. Forgive my stupidity......
My broker has attributed a cost of £0 to the Haleon shares and totally ****ed up my GSK average so it is showing as 1% gain currently. Average price before all this was 1405. Roughly 25% up pre split and consolidation.
https://www.gsk.com/media/7708/how-haleon-will-demerge-from-gsk.pdf
It was explained quite far into one of the RNS last week, but for info:
"Prior to the Demerger, GlaxoSmithKline Consumer Healthcare Holdings (No. 2) Limited ("JVCo"), the current holding company of the Consumer Healthcare business, will pay dividends to GSK and Pfizer, which are expected to result in GSK receiving cash proceeds of more than £7 billion at separation (the "Pre-Demerger Dividends"). Qualifying GSK shareholders will be entitled to receive one Haleon share for each GSK share held by them and will continue to own their GSK shares unless they sell or transfer them in the ordinary course.
Following the Demerger, the total issued ordinary share capital of Haleon will be held as follows:
· at least 54.5 per cent. will be held in aggregate by GSK shareholders;
· up to 6 per cent. will be held by GSK;
· 32 per cent. will be held by Pfizer; and
· certain Scottish limited partnerships (the "SLPs") set up to provide a funding mechanism pursuant to which GSK will provide additional funding for GSK's UK Pension Schemes, will in aggregate hold 7.5 per cent."
"The Board has declared a first interim dividend for 2022 of 14 pence per share (Q1 2021: 19 pence per share)
...
In aggregate, this would represent on the full year 2022 basis the equivalent of a Group dividend of around
52p per share. Dividends payable by Consumer Healthcare will only be receivable by shareholders who remain
invested in Consumer Healthcare post-separation and at the appropriate record dates."
Page 19 of the results.