Q: At the time of the transaction announcement, I had assumed the original ACB from Karora would follow, and the transaction would not be a taxable event. My concern was how would the $0.608/share be treated. I enquired, and received this passed along from their tax dept, "This was a return of capital spin-off followed by a mixed consideration third-party acquisition.It was effectively a fair market value disposition because the consideration was a mix of cash and shares. To be tax deferred in Canada it has to be shares only."
In other words, the entire transaction would be taxable this year. (The ACB on the WGX shares reflects that.)
Is this your understanding? If so, any idea why they would structure the deal this way? Doing so would seem decidedly non shareholder friendly.
Thank you for your comments. Tim
In other words, the entire transaction would be taxable this year. (The ACB on the WGX shares reflects that.)
Is this your understanding? If so, any idea why they would structure the deal this way? Doing so would seem decidedly non shareholder friendly.
Thank you for your comments. Tim
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Equinox Gold Corp. (EQX $8.59)
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Karora Resources Inc. (KRR $6.70)
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Westgold Resources Limited Ordinary shares (WGX $2.45)
Q: which of the above would you buy now?
Q: Can you please explain what will happen to my KRR shares on TSX after the company reorganization?
Thank you!
Thank you!