LIC & LIT Washington H. Soul Pattinson and Co. (SOL)

I understand your dilemma especially as it is considered losses hurt twice as much as the joys of a win.

I think it may come down to your belief in the management. I'll point out that while SOL now has MLT, over a longer period it will probably not be the MLT you previously once knew as SOL apparently has these plans for it which may be a consideration for you and other investors.

 

Does the cost base for SOL post takeover become set at the price of the takeover, so I could technically sell for a bit of a profit now (relative to my MLT purchases) whilst locking in a significant capital loss with the current SOL price compared to takeover price?

 

I believe SOL got a class ruling to allow scrip for scrip roll-over relief if you choose. You should be able to find a copy on SOL's website.

You either choose relief and MLT cost base becomes your SOL cost base and there is no CGT event until you sell SOL. Or you don't choose relief in which case you have to declare a CGT gain at takeover date with MLT cost being your cost base and takeover price being your sale price, this is the only way to reset the cost base. The loss from new cost base if you sell now would just offset some of the gain you would have to declare by not choosing relief.

What you seem to be indicating you want to do by just taking the loss from a reset cost base without declaring the gain to reset it is not possible. If you don't understand - seek professional advice.

 

That’s perfectly clear and makes a lot more logical sense than the long shot I was hoping for.
Thank you very much.

 

From media sources last Tuesday. A mere $200m.

"Australia’s hottest asset class has a new player. Pengana Capital and its major shareholder, Washington H. Soul Pattinson, are understood to be jointly launching a global private credit offering as early as Wednesday."

 

Looking back