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  • The merger transaction - two separate schemes of arrangement

    The transaction involved 2 schemes of arrangement (one each for the shareholders of AGL and Alinta), which took place one after the other.

    The Alinta scheme

    First, under the Alinta scheme, Alinta shareholders transferred their Alinta shares to the New Alinta group in exchange for shares in New Alinta.

    This document does not help you with the Alinta scheme. If you owned Alinta shares under the merger transaction, you should read the Alinta fact sheet to work out the tax consequences.

    The AGL scheme

    Just after the Alinta scheme was completed, the AGL scheme occurred. Under that scheme, AGL shareholders transferred their AGL shares to the New Alinta group. For each of those shares they received 0.5775 of a New Alinta ordinary share and one New Alinta converting share.

    Immediately after the AGL shareholders received the New Alinta converting shares, they were bought back by New Alinta. As consideration for the buy-back of those converting shares, shareholders received one AGL Energy ordinary share for each converting share bought back.

    Tax consequences of the AGL scheme

    A capital gains tax (CGT) event happened as a result of both the exchange of AGL shares for shares in New Alinta and the buyback of New Alinta converting shares for AGL Energy shares. In both cases, most AGL shareholders are eligible for CGT concessions that will mean you do not need to include anything in your 2006-07 tax return from this transaction. You do however have to work out the CGT cost base of your shares in New Alinta and AGL Energy. The worksheet and instructions show you how to do this.

    If you subsequently sell or have sold any of the New Alinta or AGL Energy shares you received under the merger, you can use the cost base in the worksheet to work out the capital gain or capital loss that arises as a result.

      Last modified: 06 Oct 2009QC 19171