Lendlease Corporation Limited - stapled securities acquired under the Placement or Securities Purchase Plan
This Ruling sets out the capital gains tax (CGT) consequences for Lendlease Group security holders who acquired Lendlease Group stapled securities under the Placement or Security Purchase Plan (SPP) announced on 28 April 2020.
Full details of this scheme are set out in paragraphs 10 to 17 of this Ruling.
All legislative references are to provisions of the Income Tax Assessment Act 1997 unless otherwise indicated.
This Ruling applies to you if you acquired Lendlease Group stapled securities under the Placement or the SPP.
This Ruling applies from 1 May 2020 to 30 June 2020.
Ruling
Each Lendlease Group stapled security consists of a share in Lendlease Corporation Limited (LLC) and a unit in Lendlease Trust (LLT) which are stapled. The LLC share and the LLT unit are separate CGT assets (section 108-5).
The first element of the aggregated cost base or reduced cost base of your Lendlease Group stapled security acquired under the Placement or SPP is $9.80 (paragraph 110-25(2)(a)).
The expenditure of $9.80 you incurred for the Lendlease Group stapled security must be apportioned on a reasonably attributable basis (subsection 112-30(1)) to determine the first element of your cost base or reduced cost base in the LLC share and the LLT unit.
The Commissioner accepts that a reasonably attributable basis of apportioning the $9.80 is $7.32 to the LLC share and $2.48 to the LLT unit.
Scheme
The following description of the scheme is based on information provided by the applicant. If the scheme is not carried out as described, this Ruling cannot be relied upon.
The Lendlease Group, consisting of LLC and LLT, is a stapled group whose respective shares and units trade as stapled securities listed on the Australian Securities Exchange.
On 28 April 2020, the Lendlease Group announced a capital raising under the Placement and SPP.
On 4 May 2020, a total of 96,938,776 new Lendlease Group stapled securities were issued under the Placement.
On 4 June 2020 a total of 26,535,894 new Lendlease Group stapled securities were issued under the SPP.
Each Lendlease Group stapled security was issued for $9.80 under the Placement and SPP.
The Lendlease Group raised $1.21 billion in total, consisting of the $950 million Placement and the SPP of $260 million.
As at 30 June 2020, the net assets of the Lendlease Group were $5,175,535,000 for LLC and $1,756,465,000 for LLT.