Ici/zeneca demerger 1993

Terry_Towelling

When ICI split up in 1993 it allocated 1 Zeneca (now AstraZeneca) share for each ICI share held. However, the ICI shares were £1 shares and the Zeneca ones were US$0.25 shares.

Does anyone know how to calculate the proportion of ICI that became Zeneca? Would I need to know the US$ exchange rate from the date in 1993?

It can't be a 50:50 split as suggested by numbers of shares because the Zeneca ones are US$0.25 shares and not £1 shares.

If it were pounds for cents Zeneca would be worth 1/5 of the original ICI holding but it can't be that simple.

GazHol

Try: https://www.astrazeneca.com/investor-relations/faqs.html#mergers-demergers-0

Shares in Zeneca Group PLC acquired on demerger from ICI will be treated as having a base cost for capital gains tax purposes ascertained by reference to the values of Zeneca and ICI shares on 1 June 1993 calculated in accordance with the provisions of Section 272 of the Taxation of Chargeable Gains Act 1992. The base cost of any holding of ICI Shares on that date will be adjusted on the same basis.

The relevant prices on The London Stock Exchange on 1 June 1993 were:

Zeneca - 625.75p and ICI - 631.75p

The base cost of the pre-merger ICI Shares were therefore split between the post-demerger Zeneca and ICI Shares in the following proportions:

Zeneca - 0.49761 and ICI - 0.50239

Terry_Towelling

Thanks, GazHol. I'll try to get a read of that section of the act and I'll check the link you provided.

So, to check I have got this right, If I acquired ICI shares in 1977, and want to work out the gain made on the AstraZeneca shares assigned to me at demerger in 1993, I use 49.761% of the original ICI acquisition price (or 31/03/1982) as my base (allowable) cost.