Diligent Boardbooks IPO

[Harvey Specter]

So I am worse off!Ouch

Wouldn't be hard for IRD to data match. Just ask the registry for those with shareholdings at the delisting data, then send a letter to all those with small holdings. Not saying they will, or that they do*, but just that it wouldn't be hard for them to do.

* they recently asked Trademe for a list of those with lots of transactions and found a small amount of tax.

[Markymarknz]

Ouch

Wouldn't be hard for IRD to data match. Just ask the registry for those with shareholdings at the delisting data, then send a letter to all those with small holdings. Not saying they will, or that they do*, but just that it wouldn't be hard for them to do.

* they recently asked Trademe for a list of those with lots of transactions and found a small amount of tax.

I contemplated holding onto my shares and hoping that I could just do nothing about the tax and plead ignorance if asked, or in fact defend my position that the sale resulted in a capital gain which I shouldn't pay tax on. Then I realised Linkmarket services registers your IRD No. and withholding tax details, so I decided not to risk it and sold a few days ago.

[Bilbo]

If I am on 33% (over $70k) and based on the following ... I am late to the party .... I am a small shareholder with around 2000 shares bought at $5.50 (Total $11000). On the assumption the NZD equivalent to $7.15/share .... I am entitled $14300."

I'll be paying 33% x $14300 =$4719. Is this right? .... So I am worse off!

Talk to your accountant. They may be able to opt to use FIF rules to avoid being taxed on the whole amount. The amount involved justifies spending a few hundred dollars on proper advice.

[clarky]

Have you checked that you are within the 50k?

http://www.ird.govt.nz/toii/fif/how-taxed/how-tax-rules/toii-fif-how-taxed-when-rules-apply.html

[theace]

Have you checked that you are within the 50k?

http://www.ird.govt.nz/toii/fif/how-taxed/how-tax-rules/toii-fif-how-taxed-when-rules-apply.html

Yeah, definitely under the $50k. My interpretation is that I don't need to pay anything!

[Bilbo]

Yeah, definitely under the $50k. My interpretation is that I don't need to pay anything!

My understanding is that you would not need to pay anything if you sold on market, however the distribution from the merger is not treated the same as a sale, but more like a dividend and could be taxable. If that is the case you could elect to use FIF rule and may avoid the tax - "For income years starting on or after 1 July 2011 where your investment does not exceed $50,000 you can elect to use the FIF rules. But you must then use the FIF rules for 4 years"

But I really don't know as I sold on market when the merger was first announced and have not looked into the tax implications of the merger in depth.

[gonzo56]

Only 58.24% voted for the "merger"

I wonder what the outcome would have been had all those unhappy shareholders stayed in and voted against it...
(me included!) :sleep:

[iceman]

Yeah, definitely under the $50k. My interpretation is that I don't need to pay anything!

Have a look at post 5717 where I posted an email from the Shareholders Association, if you haven't read it already. Sadly I think you will find that you will be one of many SH caught out and shafted by DIL Directors. They have shown no regard to small holders with this merger.
Despite DIL having been a very successful investment for me, the Directors will all go on my "never again" list.

[Dilbert]

I have seen the statement from the Shareholders Assoc and Craigs, both of which mention taxation concerns. But neither of them really elaborate of the exact nature of those concerns, nor how they reached their conclusions. Its all a bit murky. Not that it concerns me anymore, I sold out last week because of the uncertainty and the exchange rate looked like it was worsening.

[G on]

And they wonder why people continue to buy rentals!!!

To treat a compulsory acquisition of your shares with no further involvement in the "merged" company as a dividend and therefore taxed on the whole amount would be a ludicrous situation. For anyone contemplating going into the FIF tax regime because of this one event you might want to get in touch with IRD and ask for a judgement on the specific tax treatment on the DIL takeover.

You can always give Mary Holmes from the Herald a call and she can discuss it with IRD about it too.

This may turn out to be one more shafting added to the many before and in which case is a pretty sad indictment of NZ sharemarket and the ongoing grey waters of taxation.

[sideburns66]

This has probably been covered somewhere - but does anyone know when the payout for the shares is due to come through? I have completed my bank account details update. Thanks :t_up:

[G on]

The last day for the "merge" is June 13. See page 14 of the big book ent out on march 14. It doesn't give specific dates.

[winner69]

Wonder how Diligent are going these days

Probably 10 times as big now?

[moka]

Wonder how Diligent are going these days

Probably 10 times as big now? Six times as big in 2022 with $600m revenue, and $99.3 million in 2015.

https://en.wikipedia.org/wiki/Diligent_Corporation
(https://en.wikipedia.org/wiki/Diligent_Corporation)
Customer and revenue
In 2022, the company reported more than 16,500 customers[27] and 700,000 board members and leaders from more than 130 countries.[28] In 2022, the company reported revenues exceeding $600 million.[29]

https://www.globenewswire.com/news-release/2016/02/28/814846/32244/en/Diligent-Corporation-Fourth-Quarter-and-Fiscal-Year-2015-Financial-Results.html
(https://www.globenewswire.com/news-release/2016/02/28/814846/32244/en/Diligent-Corporation-Fourth-Quarter-and-Fiscal-Year-2015-Financial-Results.html)
Diligent's revenue in 2015 was between $98.5 million and $98.8 million, representing an increase of 19% over the previous year.
Specifically, Diligent reported total revenue of $99.3 million for the full fiscal year 2015.

https://www.nzherald.co.nz/business/diligents-boss-sees-dotcom-parallels/SO5DEQBLDCS4Z6W2UBO5TNKLDY/?c_id=3&objectid=11438339
(https://www.nzherald.co.nz/business/diligents-boss-sees-dotcom-parallels/SO5DEQBLDCS4Z6W2UBO5TNKLDY/?c_id=3&objectid=11438339)
Diligent is anticipating revenue of US$97 million to US$99 million this year (2015), which would be an increase of up to 19 per cent on 2014.

https://www.sharetrader.co.nz/showthread.php?5408-Diligent-Boardbooks-IPO/page558
Diligent had over 100,000 users in 2015

[iceman]

Six times as big in 2022 with $600m revenue, and $99.3 million in 2015.

https://en.wikipedia.org/wiki/Diligent_Corporation
(https://en.wikipedia.org/wiki/Diligent_Corporation)
Customer and revenue
In 2022, the company reported more than 16,500 customers[27] and 700,000 board members and leaders from more than 130 countries.[28] In 2022, the company reported revenues exceeding $600 million.[29]

https://www.globenewswire.com/news-release/2016/02/28/814846/32244/en/Diligent-Corporation-Fourth-Quarter-and-Fiscal-Year-2015-Financial-Results.html
(https://www.globenewswire.com/news-release/2016/02/28/814846/32244/en/Diligent-Corporation-Fourth-Quarter-and-Fiscal-Year-2015-Financial-Results.html)
Diligent's revenue in 2015 was between $98.5 million and $98.8 million, representing an increase of 19% over the previous year.
Specifically, Diligent reported total revenue of $99.3 million for the full fiscal year 2015.

https://www.nzherald.co.nz/business/diligents-boss-sees-dotcom-parallels/SO5DEQBLDCS4Z6W2UBO5TNKLDY/?c_id=3&objectid=11438339
(https://www.nzherald.co.nz/business/diligents-boss-sees-dotcom-parallels/SO5DEQBLDCS4Z6W2UBO5TNKLDY/?c_id=3&objectid=11438339)
Diligent is anticipating revenue of US$97 million to US$99 million this year (2015), which would be an increase of up to 19 per cent on 2014.

https://www.sharetrader.co.nz/showthread.php?5408-Diligent-Boardbooks-IPO/page558
Diligent had over 100,000 users in 2015

This one was a great loss for the NZX. Us retail shareholders were treated badly when it was sold and it hurt to see it being "stolen" away from us :t_down:

[Baa_Baa]

This one was a great loss for the NZX. Us retail shareholders were treated badly when it was sold and it hurt to see it being "stolen" away from us :t_down:

It was good while it lasted though, depending on timing. Sorry to see it go.

[iceman]

It was good while it lasted though, depending on timing. Sorry to see it go.

Yes it sure was. Was my biggest holding and it was agonising to have to let it go

[Baa_Baa]

Yes it sure was. Was my biggest holding and it was agonising to have to let it go

Yeah, when it crashed it took a few deep breaths as to why (no good reason) and moreso to get some more at the time, but that worked out well. That was before the rug got pulled out from beneath us, then end-of, it's all over, nothing we can do.

I don't invest in these types anymore, and am looking to exit the few that I still do have when the time is right.

[Ggcc]

Like most nzx stocks that grow so nicely. They get snapped up by overseas companies for a bargain and at the time it seems like bought at a surplus

[Bjauck]

Like most nzx stocks that grow so nicely. They get snapped up by overseas companies for a bargain and at the time it seems like bought at a surplusPerhaps it has grown much more strongly than if it had stayed listed in NZ. NZ maybe does not want to look after its growth companies. I was sad to see my investment go.

[Balance]

Like most nzx stocks that grow so nicely. They get snapped up by overseas companies for a bargain and at the time it seems like bought at a surplus

Not sure about the bargain, Ggcc, as I can recall DIL shares being trashed by the market on several occasions (initially after listing, then when there was the controversy over accounting issues) - allowing investors to buy the shares really cheap (I did) so am not going to complain about making 750% on their investments.

Who knows how well or badly Diligent is doing now?

There are instances also where overseas companies & investors bought NZ companies and ended up losing big. Examples would be Yellow Pages (billion dollar loss) and Fletcher Paper!

[Ggcc]

Not sure about the bargain, Ggcc, as I can recall DIL shares being trashed by the market on several occasions (initially after listing, then when there was the controversy over accounting issues) - allowing investors to buy the shares really cheap (I did) so am not going to complain about making 750% on their investments.

Who knows how well or badly Diligent is doing now?

There are instances also where overseas companies & investors bought NZ companies and ended up losing big. Examples would be Yellow Pages (billion dollar loss) and Fletcher Paper!
Agreed the SP was in and out of love, but they at the time they carried a bucket load of cash and were sold too cheap in the eyes of the many at the time. They sold for lower than their ATH if I recalled right.

[Balance]

Agreed the SP was in and out of love, but they at the time they carried a bucket load of cash and were sold too cheap in the eyes of the many at the time. They sold for lower than their ATH if I recalled right.

The majority private equity interests wanted out to book their 1800% gain so can’t blame them!

They did come in to recapitalise the company and guide it through to the success it became.

Rest of us were really there for the ride. And what a ride it was!

I bought shares for my daughter and proceeds from the shares paid for her university education. :)