Wednesday, 2 February 2022
Effective date for return of capital.
Thursday, 3 February 2022
Last date for trading in ‘cum return of capital’ for shares.
Friday, 4 February 2022
Shares commenced trading on an ‘ex return of capital’ and ‘ex dividend’ basis.
Monday, 7 February 2022
Record date for determining entitlement to participate in the return of capital and the dividend.
Monday, 14 February 2022
Payment date for return of capital and dividend.
Shareholders to received their payment advice.
Boral announced a $3 billion return of surplus capital to shareholders on 1 February 2022. The payment date for the return of capital and dividend was 14 February 2022.
The return of surplus capital followed the receipt of proceeds from the sale of Boral’s North American Building Products and 50% owned Meridian Brick businesses, and Australian Building Products businesses, which combined were sold for a total consideration of more than $3 billion.
The distribution returned funds to shareholders in an efficient way, consistent with Boral’s financial framework and focus on disciplined capital management.
The $2.65 per share capital return constituted an equal reduction of Boral’s share capital for the purposes of the Corporations Act. It applied to each shareholder in proportion to the number of shares they held, and the terms of the reduction were the same for each shareholder.
No shares were cancelled in connection with the return of capital. Accordingly, the return of capital did not affect the number of shares held by each shareholder, nor did it affect the control of Boral.
Boral’s Dividend Reinvestment Plan did not apply in respect of the return of capital or the unfranked dividend.
Tax implications of the capital return
The Australian Taxation Office (ATO) published a Class Ruling (CR 2022/19) in relation to Boral’s $2.65 per share return of capital on 2 March 2022.
For shareholders who hold their shares on capital account for Australian income tax purposes, the cost base (and reduced cost base) of each share will be reduced by $2.65 per share for the purposes of calculating any capital gain or loss on the ultimate disposal of that share for Australian income tax purposes. An immediate capital gain would arise for shareholders where their cost base of any share is less than $2.65.
The above information in relation to tax implications does not take into account the individual circumstances of each shareholder and does not constitute tax advice. Accordingly, shareholders should seek their own professional advice as to their income tax implications arising from the capital return and unfranked dividend.
Frequently asked questions
Did the return of capital reduce the number of shares that I hold?
No shares were cancelled in connection with the return of capital. Accordingly, the return of capital did not affect the number of shares held by each shareholder.
What is the total payment amount that I received?
The payment to shareholders was equal to the number of shares held on the record date, 7 February 2022 multiplied by $2.72 per share.
When was payment to shareholders made?
Shareholders received payment advice on 14 February 2022. Payment was made into the bank account recorded on the register by shareholders.
How was I notified of the total payment amount?
Shareholders were sent a payment advice for the distribution by email or in hard copy on 14 February 2022.
Why have I not received payment into my bank account?
Payment was made into the bank account recorded on the register by shareholders.
Shareholders can check their bank details via their Portfolio login on the Link Market Services website at www.linkmarketservices.com.au and choose the Payments & Tax option once logged in.
If shareholders have not previously registered a Portfolio, please select register now and follow the onscreen prompts. Shareholders will need their HIN/SRN information, which is on their holding statement.
Shareholders can update their bank account if they have registered their Portfolio previously on the Link Market Services website.
Who can I contact if I have other questions in relation to the payment?
If you have further questions in relation to the return of capital, please contact Boral’s share register Link Market Services Pty Limited.