Demerger Q&A for shareholders
Click here to download the Explanatory Memorandum for Mayne Pharma Demerger
I owned 1,000 Mayne Group shares pre-demerger. What do I own now? Provided you have not traded any shares since the demerger, you will have: 1,000 Symbion Health shares. These are your existing Mayne Group shares, renamed to Symbion Health. Mayne Group changed its name to Symbion Health Limited as part of the demerger How do I work out the cost base for capital gains tax purposes for my Mayne Pharma and Symbion Health shares? In simple terms, 55.783% of the original cost base of your Mayne Group shares will be the cost base of your Symbion shares, and 44.217% of the original cost base of your Mayne Group shares will be the cost base of your Mayne Pharma shares Please refer to the ATO fact sheet for further details. This can be accessed through the following link: I have not received any notification from the share registry to say I own Symbion Health shares, but I have in relation to Mayne Pharma? You have not received any notification in relation to your Symbion Health shares, as they are not new shares issued to you. Your Symbion Health shares are your existing Mayne shares, just renamed as Symbion Health Mayne Pharma shares however, are new shares issued to you, and that is why you received confirmation of this issue What are the taxation implications of the demerger proposal for Australian shareholders? Where shareholders elect demerger rollover relief, there will be no Australian income tax or capital gains tax implications associated demerger, except for an adjustment to the capital gains tax cost base of existing Mayne shares and the establishment of the new capital gains tax cost base of Symbion Health and Mayne Pharma shares held after the demerger Please refer to the ATO fact sheet for further details. This can be accessed through the following link: What will happen to my dividends in future? The demerger will result in you having the right to receive dividends in both Mayne Pharma and Symbion Health Mayne Pharma is a growth orientated business and is expected to reinvest a significant portion of profits to continue its growth. Accordingly, Mayne Pharma intends to pay dividends up to a maximum of 20% of net profit after tax (calculated in accordance with AIFRS). Mayne Pharma does not intend to pay a dividend with respect to the 6 months ending 31 December 2005. It intends to pay its first dividend out of profits for the period ending 30 June 2006 Symbion Health intends to pay dividends representing around 50-60% of its net profit after tax (calculated in accordance with AIFRS). Symbion Health intends to pay an interim dividend of 3.5 cents in respect of the 6 months ended 31 December 2005 and a dividend in line with its stated payout ratio in respect of the 6 months ended 30 June 2006 The payment of the Symbion Health interim and full year dividends in 2006 is subject to any restrictions arising out of the accounting treatment of the demerger. Given the number and nature of factors impacting Symbion Health's dividend capacity, Symbion Health is not yet in a position to conclusively comment on its dividend capacity for the 2006 financial year. The matter is unlikely to be resolved until the finalisation of Symbion's accounts for the half year ended 31 December 2005
1,000 Mayne Pharma shares. These are new shares automatically issued to you as a result of the demerger
http://www.ato.gov.au/large/content.asp?doc=/content/66867.htm
http://www.ato.gov.au/large/content.asp?doc=/content/66867.htm
