Diligent Boardbooks IPO

[Bjauck]

What's the problem? Isn't it just a matter of selling on market before the merger to avoid any tax issues?

The previous posts indicate confusion as to the actual tax consequences of this sale. The issue seems to be that the disposal of a shareholder's shares as a result of this takeover (either by on-market sale or by waiting for final payment) gives rise to vastly variable tax consequences.

Disc: Not a DIL shareholder

[Dilbert]

In light of that confusion, I bailed today and sold. Its been a great ride, although a slightly disappointing end.

[gonzo56]

Taxed on a whole de-merger (s32) and taxed on a merger and sale (DIL)! Catch22!
And some (investors in real estate?) are scared of a capital gains tax. Just imagine their reaction if the whole sale price of their house was treated as taxable income!

It is crazy that your (forced) disposal of DIL shares due to this de facto takeover could give rise to a range of vastly different tax consequences. How many are going to risk investing in new and emerging companies if your whole investment could suddenly be treated as taxable income?

It looks like the DIL directors could not care less about the NZ shareholders.

So true Bjauck.

I too have sold out, Dilbert, and not only at a loss, but also with a $50 transaction fee.

At the end of the day, I'll still be better off than I would have been if I continued to hold and went through with the force sale. I already paid tax on that money I earned, I don't want it re-taxed! And to whomever it was that asked, yes, I believe it would have been automatically taxed by Link Market Services when they received it (for NZ payments under 50K) - just like a dividend.

So disappointed by this whole thing

[Markymarknz]

So true Bjauck.

I too have sold out, Dilbert, and not only at a loss, but also with a $50 transaction fee.

At the end of the day, I'll still be better off than I would have been if I continued to hold and went through with the force sale. I already paid tax on that money I earned, I don't want it re-taxed! And to whomever it was that asked, yes, I believe it would have been automatically taxed by Link Market Services when they received it (for NZ payments under 50K) - just like a dividend.

So disappointed by this whole thing

What a shambles indeed, how could they possibly recommend that its in the best interests of shareholders. It would be good to see the decision makers held accountable for this, but I wont hold my breath., especially not when they are personally profiting from the deal :O

These have been my longest held shares and like most others I think its a shame to see it end in a debacle, similar vein to their previous accounting failures, maybe it was destiny!

[stoploss]

A lot of people questioned Milford exiting this , but looks like their judgement call was right .....

[Dilbert]

A lot of people questioned Milford exiting this , but looks like their judgement call was right .....

Yeh, it was spot-on in hindsight. Wish I'd followed them at the time.

[bull....]

anyone buy for the gain - current price 7.06 pay-out 7.39

[gonzo56]

anyone buy for the gain - current price 7.06 pay-out 7.39

Probably not. It does look like a lot of people have bought in the last week though... (The sale price is $4.90 in USD btw, so it would be $7.14 NZD)

[Harvey Specter]

Probably not. It does look like a lot of people have bought in the last week though... (The sale price is $4.90 in USD btw, so it would be $7.14 NZD)

Yip - forex risk and also make sure your tax position is right (that you do FDR on your FIF income).

[bull....]

if you brought last week you would still be able to paid in nzd so no forex risk, to late now though - tax position varies from person to person