Q: Good morning,
This question relates to the upcoming sale of PKI to Sunoco.
If a person held 1000 shares of PKI and elected to take the cash offer of $44 and was not granted the full cash allotment, and instead received $19.8 per share held and .295 shares of the new Company he would have $19.8k plus 295 shares of the new entity.
Or at least some configuration of shares depending on the choices of other shareholders.
That being said, if one wanted to dispose of these newly issued shares, how does one go about it, and are there any tax ramifications to be aware of when selling American shares?
My cost of PKI shares is approx $38 Can. There may be a small cap gain depending on the value of the SUN shares.
Or should one just bail out before the new shares are issued?
Finally, what is your best guess at the share price of PKI, just prior to the official delisting and the creation of SUN?
This question relates to the upcoming sale of PKI to Sunoco.
If a person held 1000 shares of PKI and elected to take the cash offer of $44 and was not granted the full cash allotment, and instead received $19.8 per share held and .295 shares of the new Company he would have $19.8k plus 295 shares of the new entity.
Or at least some configuration of shares depending on the choices of other shareholders.
That being said, if one wanted to dispose of these newly issued shares, how does one go about it, and are there any tax ramifications to be aware of when selling American shares?
My cost of PKI shares is approx $38 Can. There may be a small cap gain depending on the value of the SUN shares.
Or should one just bail out before the new shares are issued?
Finally, what is your best guess at the share price of PKI, just prior to the official delisting and the creation of SUN?
5i Research Answer:
Sunoco shares are 'to be listed' so if one wants to sell shares received (and it will most likely be a pro-rata allocation of cash and shares) then to sell Sunoco shares one would need to wait until listing. Now that shareholders have approved the deal there may be a bit of upside left when shares get listed, but we would be comfortable selling PKI now for other opportunities rather than waiting further, if one does not care about owning Sunoco. The transaction is taxable, based on the cash received and the initial trading value of Sunoco shares. We might see PKI near $40 prior to de-listing assuming nothing else changes.