Member Info for johnpwh

Stupid thing Foz is that a few years ago I was meant to be a tax expert!
Those with their shares in w tax efficient wrapper obviously don't need to be concerned. But for others if there is a choice on the tax treatment of the ZNWD shares then people need to understand as the taxation affects not only those shares but the CGT on the BCN shares. I'll shut up now (sighs of relief all round)

Foz
Its a type of dividend although in truth its part of the offer for the company. If you read the pages of the offer document that observer842 refers to there is some debate on the taxation treatment, and even advises to consulting a professional advisor.
If taxed as a dividend it would be particularly galling for anyone underwater here at the 67.5p, they could make a substantial capital loss but still face a tax liability because they have received a dividend.

It seems that because the ZNWD shares are being given as a dividend they could be taxed as income rather than fall under Capital Gains legislation as I described below. The para in the offer document I am referring to is:

The distribution of the Zinnwald Shares could EITHER be seen as a separate distribution to Bacanora
Shareholders (in which case the comments on the expected tax impact on individual or corporate
shareholders are as set out below); or it could be seen as part of the consideration received for the
disposal of Bacanora Shares (in which case the comments on the expected tax impact on individual
or corporate shareholders are as set out above in paragraph 1).

Not sure if you can elect one or the other depending on what is the best calc for you. That sometimes happens in the tax world. Anyone more enlightened than me?

observer
Simultaneous posting!
I will check that out to ensure I haven't given duff info

'r'
Re CGT calc.
On the day that that your BCN shares disappear from your portfolio and ZNWD shares appear you work out the amount of cash you are receiving, A say, and the value pf the ZNWD shares you now own at the market price of ZNWD shares on that day, B say.
Suppose the historical cost of the s104 pool of your BCN shares you have is C (that you should already know this). Then:
Your Capital Gain due to the cash you will receive is A - (C x A/(A+B))
The s104 pool cost for your shiny new ZNWD shares is then C x B/(A+B), which you will need whenever you dispose of them
In other words you split your current acquisition cost into 2 bits because C x A/(A+B) + C x B/(A+B) = C

I know what you mean Kluck
The trouble with these offers is that the thousands, maybe ten or hundreds of thousands (for some companies) of private investors haven't got an ice-cubes hope of correctly understanding the minutiae and nuances of the legalese that they are expected to vote in a binding way on. Oh for plain english

if only you mean the Share Price!

Hi Mr C
Ever the contrarian I unfiltered BB over the weekend and to be honest now the posts are on topic I think his opinions are worth reading

Pleased Parkmead is up a bit. I filled the car with Super Unleaded as its still E5. That's going to hurt if I have to keep doing it

I was just contemplating a dry night or have a beer.
Think I'll have a beer. Maybe 2

I refer you to Hounds post at 11.33 yesterday. The only thing I am able to vote on is the GM resolutions for the meeting on 24th

Mr C
Not sure what you are referring to.
I am talking about the votes for the GM on 24th. The resolutions for then, which I intend to vote yes to, enables an accounting exercise to be sanctioned by the Courts for dividends to be given. A vote against will prevent the ZNWD share distribution, which is a type of dividend. I suppose you can argue that that the bid in its current form would then have to be abandoned by GF. and reconsidered on different terms. That is starting to play bluff and counter bluff and is not a game I am prepared to play, sorry.

I note that the BCN offer price stands at around 67.7p today, the first time that I have seen it exceed the cash part of GFs offer.
I'm sure different interpretation will be put on this, my own is that it is being accepted that the GFs offer as it stands (ie 67.5p + ZNWD interest worth c.73p) is likely to be voted through

Hounds
Reading the recent mails I thought I had maybe missed something on the acceptance of the bid itself.
I cant see why anyone would vote these resolutions down as in doing so it would block the ZNWD share part of the bid, though I suppose that some would think that by blocking in this was it may put people off accepting the current bid for the company as it currently stands.
Thank you for clarifying.

Just had a fairly fruitless hour and a bit on a web chat to iWeb, though the customer service rep was trying is best with their Corporate Actions people. All I have managed is the 2 resolutions on allowing the accounting reduction in the share account and allowing the possible payment of the specie dividend.
As for accepting or otherwise the bid I am no further forward. I don't even see the wording or the dates on BCNs website. Could just be me being thick.
Feel frustrated at the mo. Grrrrrrr

I am currently on line chasing iWeb about this Corporate Action for 17th which I have still not received. Can anyone send me the text of it?

Thanks KLUCK
I still haven't heard about a Corporate Action from iWeb, despite having contacted them once already. Will try again tomorrow.

observer
I would agree with you if the BCN BOD and M&G hadn't gifted the company to GF by ensuring that they have virtually all the votes they need to leave dissenting BCN shareholders, at best, at near certainty of becoming minority shareholders. Irrespective of what happens to the Lithium price how is the bid for a majority shareholding in BCN (to add to their 50% share of the JV company that holds the Sonora assets) going to fail?

Hi Kluck, is 17/9 the deadline for the vote on Capital restructure to allow dividends?

Yes Manny, that's my understanding. There cannot be a divi made (which the ZNWD share distribution is) without cancelling the share premium reserve, been through that with Ariana recently as well. I personally read it as a necessity and don't read it as a precursor to an increased bid. Put yourself in GFs shoes - why would they increase the bid when its almost certainly in the bag?
Contacted iWeb this morning, the basically said 'Eh?'. I may need to contact them again I suspect when do we have to vote on the offer?