iSentric Spin-off - Demerger Class Ruling
Sydney, Oct 9, 2014 AEST (ABN Newswire) - Donaco International Limited (
ASX:DNA) (Donaco) refers to the recent spin-off of iSentric Limited (iSentric), which now trades on the ASX under the code ICU. The ICU shares previously had the code OMI.
As part of the spin-off, Donaco sought a ruling from the Australian Taxation Office (ATO) on the taxation implications for Australian resident shareholders who hold their shares on capital account.
The ATO has today issued Class Ruling CR 2014/81, a copy of which is attached. The class ruling contains details about the taxation treatment applicable to certain Donaco shareholders who received iSentric shares pursuant to the spin-off.
Donaco shareholders who are residents of Australia for income tax purposes and who hold their Donaco shares on capital account will now be able to:
- choose demerger roll-over relief in relation to the spin-off;
- allocate the cost base of their Donaco shares between their Donaco and iSentric shares held after the demerger using the ATO's online demerger calculator; and
- calculate their capital gain or loss if they later sell their shares by also using the ATO's online demerger calculator.
The class ruling and further guidance on its application are also available on the ATO website. The ATO's demerger calculator is available via this link:
http://www.abnnewswire.net/lnk/9MCK53JZ
As announced on 30 September 2014, in order to calculate the reasonable approximation of the market values of Donaco shares and iSentric shares, Donaco has applied the volume weighted average price (VWAP) of the shares as traded on the ASX over the five days following iSentric's re-admission to quotation. For Donaco shares, the five day VWAP was 99.9 cents, giving a market value of $460,490,608.
For iSentric shares, the five day VWAP was 26 cents, giving a market value of $19,954,210. Accordingly, of the combined value of $480,444,818, Donaco shares comprise 95.85%, and iSentric shares comprise 4.15%. The CGT cost base of an Australian resident Donaco shareholder receiving iSentric shares under the distribution should be apportioned accordingly.
The information above does not take into account the individual circumstances of particular Donaco shareholders and does not constitute tax advice. Donaco shareholders should seek advice from an appropriate professional adviser on the tax implications of the spin-off, based on their own individual circumstances. General information regarding the tax implications of the demerger for Australian resident shareholders is contained in Section 6 of the Notice of Meeting for the Extraordinary General Meeting held on 25 August 2014.
To view the Class Ruling, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-DNA-822156.pdf
About Donaco International Ltd
Donaco International Limited (ASX:DNA) operates leisure, entertainment and associated technology businesses across the Asia Pacific region.
Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex in Poipet, Cambodia, on the border with Thailand. Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1400 slot machines, and 385 hotel rooms.
Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.
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