Hi all, I used to own Yahoo shares. Ever since Yahoo the business entity was bought over by Verizon, Verizon paid Yahoo shareholders the money for the Yahoo business. The Yahoo name was also renamed as ALTABA on the US stock exchange since it only contains ALIBABA shares and a whole bunch of cash. So the sole reason for the ALTABA is to hold Alibaba shares and cash. It is not an on going business. There are lots of talks on how the company wants to liquidate and delist and return the cash back to the investors.
My question as I am not familiar with the US markets. Upon delisting, there should be a buyout offer right? just like in Singapore if a company wants to delist, it needs to buy out from shareholders?
Are there any tax issues? will I as a Singaporean be taxed on proceeds from delisting?
Anyone knows or can point me the right direction?
this seems like one of the risks with investing on foreign shares.
I am not familiar with US delisting as I have not experience it before. I will get my colleague Kenny to reply you as he is more into the US market.
When a company goes into liquidation, they’ll sell off all their assets, pay off their debts, and distribute the profits (if they have any) to you.
In Altaba’s case, as you can see from their liquidation and dissolution plan here:
“The Fund currently estimates that the Fund could make total aggregate liquidating distributions to stockholders, including the pre-dissolution liquidating distribution referred to above, ranging between approximately $39.8 billion and $41.1 billion (approximately $76.62 and $79.22 per Share, respectively), which estimates assume, among other things, an Alibaba Share price realized on sale and, if applicable, an Alibaba Share value at the time of distribution, of $177.00 per Alibaba Share.”
And, no, as a foreigner, you don’t have to pay capital gains tax. You’ll have no issue getting your money back. The question here is how much? That’s the greatest risk investors looking to make a profit from the liquidation will have to deal with.
Hope this answers your question. Let me know if you have any more on your mind, I’ll be happy to help.
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