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Re: [sharechat] Commonwealth Share Buy Back

From: "" <>
Date: Tue, 23 Mar 2004 23:23:38 +1200

Hi Mark,
> I'm just reading the documentation regarding the Commonwealth Bank
> share buy back. It appears to me that this is not such a good deal for
> a Kiwi investor, (to participate in the share buy back), as doing so
> will convert otherwise capital receipts (not a share trader) into a
> taxable dividend (or at least a portion of). A New Zealand investor
> would surely be better off staying out of the buy back.
> Do forum members agree?  Anybody know of link for a NZ perspective on
> this issue?

You have it 100% right Mark.   The Aussie buybacks are structured like 
they are to take advantage of Australian franking credits, which as a 
general rule kiwis can't get.   

Unless you have so few shares that brokerage would kill you, you 
would be much better to sell on market.  Or alternatively you could not 
sell the shares at all!


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