⚠️ Important: Navexa cannot provide taxation or financial advice. This guide explains how to use the Navexa platform to record a mixed cash-and-scrip acquisition. For tax implications, please consult a qualified tax advisor, the Australian Taxation Office (ATO), or the relevant class ruling for your specific transaction.
1. General Background
When a company is acquired and shareholders receive part cash and part new shares (scrip), the ATO generally requires that you treat the transaction as involving both a cash component and a share component. The share component may be eligible for scrip-for-scrip rollover relief, while the cash portion is usually subject to CGT immediately.
Navexa does not determine your eligibility for rollover or how your cost base is calculated for tax purposes. Always check the ATO guidance or class ruling specific to your transaction.
2. Recording the Transaction in Navexa
Here’s how you can represent this type of acquisition in the Navexa platform:
Step 1: Record the Cash Component
Go to the Trades tab of your original holding.
Select Add Trade → Sell.
Enter the quantity of shares representing the cash portion of the consideration.
Enter the price per share equal to the cash amount you received.
Use the last market close date before the acquisition as the trade date.
This step ensures the cash you received is recorded as proceeds in Navexa.
Step 2: Record the Share (Scrip) Component
Go to Trades / Adjustments → Add Merger → Acquisition.
Select the new company (acquirer).
Enter the implementation date (the date the acquisition was completed).
Input the conversion ratio (how many new shares you received per old share).
Select Scrip-for-Scrip Rollover if you wish to track the cost base rollover in Navexa.
This step transfers the remaining portion of your old holding into the new holding.
Step 3: Review the Outcome
The original holding will show as closed, with proceeds recorded.
The new holding will show the number of shares received, with a cost base carried forward from the original investment (if rollover selected).
The market value of the new shares may differ from the cost base, creating an unrealised gain or loss in Navexa.
3. General Example (Illustrative Only)
Suppose you held 1,000 shares in Company A.
You receive $0.50 cash per share ($500 total).
You also receive 0.8 new shares in Company B per share → 800 new shares.
At acquisition, Company B trades at $2.00 per share.
In Navexa:
Record the $500 cash portion as a Sell trade.
Record the 800 new shares through the Merger tool.
Navexa will carry forward the cost base into the new holding if rollover is selected.
4. Key Points to Remember
Navexa records cash as proceeds and shares as a new holding.
The cost base shown in Navexa reflects a rolled-over portion of your original cost base, not necessarily the market value.
For tax outcomes, always confirm with the ATO guidance or seek professional advice.
TL;DR Summary
Step | Action in Navexa |
1 | Record a Sell trade for the cash component. |
2 | Record the Merger/Acquisition for the scrip component. |
3 | Review your new holding – cost base may differ from market value. |
Disclaimer: This guide is for platform instructions only. Navexa does not provide taxation or financial advice. For your personal circumstances, consult a registered tax advisor or refer to the ATO’s official class ruling for the acquisition.