Share Sale Facility (MyState Financial members)
For full details of the Share Sale Facility please refer to the Terms and Conditions within the MyState Financial Information Booklet dated 29 June 2009.
Summary of Terms and Conditions
What is the Share Sale Facility?
The Share Sale Facility was established for eligible MyState Financial members who wished to sell their shares in MyState Limited received from the merger.
Is the Share Sale Facility open?
The Share Sale Facility closed on 28th August 2009.
When will my Shares be sold?
If you participated in the Share Sale Facility, all of the ordinary shares in MyState Limited you received will be sold during the period commencing on or about 10 September 2009 and ending on 1 October 2009, subject to extension determined by the board of MyState Limited acting in its sole discretion.
Who is arranging the Share Sale Facility?
MyState Limited is arranging the Facility and if you choose to participate in the Share Sale Facility you will be appointing MyState Limited to arrange to sell Participating MyState Limited Shares.
How do I participate?
To participate in the Share Sale Facility members must have:
- completed and returned the Sell Form to Computershare; or
- completed online Sell Form via the Computershare website. You will have needed your Member Number and your postcode. Our company code is MYS.
What price will I receive?
If you choose to participate in the Share Sale Facility, you could not specify the price at which your Sell Form will be acted upon. The price received by you for Participating MyState Limited Shares sold through the Share Sale Facility will be the average price of all Participating MyState Limited Shares sold through the Share Sale Facility. You should note that the price may be different to the price for MyState Limited Shares appearing in the newspaper or quoted by the ASX on the day that your Sell Form is sent or on any other day and may not be the best price obtained on the trading day or trading days that your Participating MyState Limited Shares are sold.
Can I withdraw my form?
No. When you return your Sell Form, you are irrevocably bound to sell the number of Participating MyState Limited Shares you are entitled to as Scheme consideration.
Will I pay brokerage if I use the Share Sale Facility?
There will be no brokerage fees for using the Share Sale Facility.
What are the Australian capital gains tax consequences if I sell my MyState Limited Shares?
The following is a general description of the Australian tax implications of selling Participating MyState Limited Shares through the Share Sale Facility if you are an Australian resident individual and you have held your MSF Shares on capital account. However, tax lay is complex and its operation depends upon your particular circumstances. You should consult you tax adviser before using the Facility.
You may be required to pay tax on the sale of your Participating MyState Limited Shares. Whether you will be required to do this, and how much you must pay, depends on when and how you acquired your Participating MyState Limited Shares and how much you paid for them:
- Tax will generally be payable on the sale of your Participating MyState Limited Shares if the Sale Price exceeds the cost base for your Participating MyState Limited Shares. The cost base of your Participating MyState Limited Shares will be determined by apportioning the cost base of your MSF Shares in accordance with the capital gains tax (CGT) rules in the Income Tax Assessment Act. Australian resident individuals or trusts (other than superannuation funds) who sell Participating MyState Limited Shares my be entitled to reduce any capital gain by 50% where they have held their MSF Shares for at least 12 months. This concessional CGT treatment would not apply to an individual shareholder who buys and sell shares in the ordinary course of business (for example, a share trader) or to a shareholder that is a company. A shareholder which is a qualifying superannuation entity is generally entitled to a CGT discount of on third, instead of 50% of the gain.
- Australian residents who choose to sell their MyState Limited Shares before they have held the MSF Shares for at least 12 months, will not be eligible for concessional CGT treatment.
- If the Sale Price is less than the amount you paid to acquire a Participating MyState Limited Share sold through the Share Sale Facility, you will realise a capital loss. It can offset capital gains you make on the sale of CGT shares or assets (in the same or later years), but is not deductible against your income.
- A capital loss available to you from sale of other assets may be deducted from a gain on sale of your Participating MyState Limited Shares. In cases where concessional CGT treatment is available, the gain is first reduced by the loss before applying the relevant discount.
How does trading MyState Limited Shares through the Share Sale Facility compare with trading them on the ASX?
| Selling MyState Limited Share though the Share Sale Facility | Selling MyState Limited Share through your broker on the ASX |
|---|---|
| You can only sell all of your Participating MyState Limited Share through the Share Sale Facility | You can sell all or a portion of your MyState Limited Shares |
| To participate, you had to complete and return the Sell Form. There was no need to appoint a broker. | If you have never used a broker then you must first appoint one to represent you and establish an account |
| You will receive the average price of all Participating MyState Limited Shares sold through the Share Sale Facility. You cannot set a sale price. | You will receive the market price at the time your transaction request is acted upon – that price may be higher or lower than the average price of all Participating MyState Limited Shares sold through the Share Sale Facility on the day that your MyState Limited Shares are sold. |
| The date on which your transaction request is acted upon depends on the operation of the Share Sale Facility. However, there is no guarantee as to the price achieved through the Share Sale Facility. | You can control the date on which your transaction request is acted upon through your specific directions given to your broker. |
| There will be no brokerage fees for using the Share Sale Facility | You must pay all brokerage fees that are agreed with your broker (plus any applicable GST) |