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Recording the BHP Petroleum to Woodside Demerger

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On the 1st of June 2022, there was a demerger of BHP Petroleum to Woodside Energy Group Limited.

Unlike other demergers, there was no Class Ruling from the ATO.

Under the demerger, the BHP Group Limited shareholder would receive an allotment of Woodside Energy Group Limited shares based on 1 Woodside Energy Group share for every 5.534 BHP Group Limited shares (rounded down to nearest whole share).

This was paid for via

  • a franked dividend based on the number of Woodside shares issued at a price of $29.76

It should be noted that no money was paid to the shareholders from the BHP franked dividend.

What a Mclowd user needs to do is as follows:-

  1. Record the franked dividend for the BHP shares
  2. Record the purchase of the Woodside Energy Group Limitedshares which equals the dividend.

How to Record in Mclowd

NOTE: You will need to record all the parts of the transaction against one of the fund’s bank accounts even though no money was ever paid into that bank.  If you record all parts of the transaction correctly, then the bank account will still balance.

We will use the following example to show you have to record this transaction.

The Fund has 589 BHP shares which cost $18,292.74

On the 1st of June 2022, the fund receives 106 Woodside shares (589 shares divided by 5.534 shares rounded down to 106 Woodside shares).

To pay for these shares, the fund received a franked dividend from BHP of $29.76 per Woodside share.

Therefore, the 106 Woodside shares cost $3,154.56 (106 @ $29.76).

1.     Record the Franked Dividend

To record the Franked Dividend, choose Income then Add Asset Income from the Menu

Complete the Add New Income screen for BHP Group LImited.

You should record the following

  • Select Account – Fund or individual member
  • Asset of BHP Group Limited
  • Choose a bank account
  • Enter Date of 1/6/2022
  • Can enter description of “demerger dividend”
  • Unfranked dividend of 0
  • Franked dividend as recorded on the BHP Group Limited In Specie Dividend Statement (example of $3,154.56)
  • Choose SAVE INCOME

 

2.     Record the purchase of Woodside shares (WDS)

To record the purchase of Woodside shares, choose Assets then Add Asset from the Menu

On the Add New Asset screen, you need to record the purchase of the Woodside shares.

You should record the following

  • Choose Member Account – Fund or individual member
  • Choose Asset class of Direct Equities
  • Choose New Holding and New Parcel
  • Type in WDS as Stock Code (for Woodside)
  • Enter HIN or SRN (optional)
  • Choose the same bank account you used for the BHP Franked dividend
  • Enter Date of 1/6/2022
  • Enter number of Woodside shares allotted (in this example it is $106)
  • Enter share cost which is the Total amount on the BHP In Specie Dividend Statement (example $3,154.56)
  • Enter Brokerage of 0
  • Choose SAVE ASSET