Smith (ds) Share Discussion Threads

[jeffian] 01/12/2024 22:46

Yes they will. If a platform like HL do not have a W-8BEN in place for you, they will sell your shares. Happened to my daughter who forgot/ignored their reminders.

[the monkster1] 01/12/2024 18:41

not sure they would sell the shares.....incur a more penal tax rate maybe but dont think they would sell the shares.

[dssmith51] 29/11/2024 19:41

Thanks to the guys who gave me feedback to my question earlier. It’s been helpful and given me more understanding. I will continue to hold for now.IP price is up and down. I will hold for now and not panic.

[jeffian] 29/11/2024 14:08

No, a share for share swap does not crystallise a gain. You simply apply the original acquisition costs to the new shares.

[rech] 29/11/2024 11:51

My holding's unsheltered. When shares in SMDS are replaced by IPR, will that constitute a sale, with CGT implication?

[laurence llewelyn binliner] 29/11/2024 07:35

#DSSmith51, I cleared here and took my profits too early at 400 pence, in hindsight an error not waiting but the reason was to avoid the WHT on income inside the ISA of 15%..I hold DEC, also dual listed NYSE/LSE, but we pay a 15% WHT on US derived income regardless, I spent a year trying to find a workaround and claiming it back with tax paid docs issued by my provider against a self assessment here but the only way I found was to do a US IRS tax return at which point I gave up on the idea..Very nice holding btw, and well done to holders sitting on their hands for c600 pence.. :o)

[jeffian] 28/11/2024 22:50

I don't know the answer to that question but this is my take on the issue.
1) I believe that NYSE listed shares will be subject to US withholding tax. I am not clear whether that is 30% or 15%
2) IF IP do as they say and go for a secondary LSE listing, I am not sure whether that avoids US withholding tax being applied to dividends.
3) I am reasonably sure that IF US withholding tax is applied, you will not be able to claw it back in an ISA as these are outside the tax system.

Thus, while you will not pay UK tax on the divis, you may have an irrecoverable charge to US withholding tax.

Perhaps someone else can provide a more definitive answer?

[dssmith51] 28/11/2024 13:08

Can anyone answer this question. I bought ISA shares in a single shares ISA over several years in the 90’s. I hold over 26,000 shares (my largest share holding by far. Will I have to pay tax on dividends? Any suggestion’s what you would? I’m 73 and thinking of selling.

[jeffian] 28/11/2024 12:17

I don't know, I'm afraid, Fozzie. In the Quanex case, which was also via a Court-sanctioned Scheme of Arrangement, the terms specifically included the promise to issue CDIs but when I queried with HL what we had actually received and whether it complied with the terms of the Scheme, they couldn't have been less interested. I am assuming we will get caught by US withholding tax but the dividend is pretty small anyway so not a huge issue.

[pj fozzie] 28/11/2024 11:38

Thanks for commenting jeffian. Well if you're right, that's a pity - I always get irritated by the 15% withholding tax. Would that 15% also apply even if the US shares had a secondary listing and I'd got the UK traded ones? I've never held American company shares that have been traded on LSE before, only UK shares which have secondary listings in US (BP & NatGrid being the two that come to mind).

Cheers,
Fozzie

[jeffian] 26/11/2024 14:17

"Plans for Secondary Listing

As part of the Combination, any New International Paper Shares issued to DS Smith Shareholders will be authorised for primary listing on the New York Stock Exchange. Subject to official notice of issuance, International Paper intends to seek a secondary listing of its shares on the London Stock Exchange."


Whether the "plans" come to anything is another matter. I was also in Tyman which was taken over by the US company Quanex and they said UK shareholders would receive their shares as CDI's to allow them to be traded in UK through the Crest system. Never happened, so far as I can see; we seem to have NYSE shares

[pj fozzie] 26/11/2024 13:34

Anyone know if we'll get IP shares, tradable on the LSE or will they be US shares?

Cheers,
Fozzie

[dssmith51] 26/11/2024 13:20

Likely January 2025.

[jeffian] 26/11/2024 10:24

Last announcement said they expect to complete "in the 4th Quarter of 2024."


Edit: As SMDS financial year runs to 30/4, I assume their "4th Quarter" is Jan-Apr rather than the final Quarter of the calendar year?

[h0me] 26/11/2024 09:49

When does this actually complete and get the IP shares?

[moorsie2] 20/11/2024 18:53

Get ready for going above 600

[spawny100] 06/11/2024 15:14

Thanks guys, makes sense. I clearly sold way too early here. Well done for continuing to hold!

[moorsie2] 06/11/2024 12:36

And dollar strengthening....

Numbers are

IP share price 57.6
Currency rate 1.286 gbp to dollar
Multiplied by 0.1285

[jeffian] 06/11/2024 12:30

Because in an all-share offer, the "bid price" is actually a moveable feast based on the value of the acquirer's shares. In this case, IP shares have had a strong run after an "ahead of expectations" Q3 trading update and today a bit of Trumpian euphoria, and the SMDS price is linked to that.

[spawny100] 06/11/2024 08:31

Wow I sold out of these too early after the bid so not been following them lately. Why did these suddenly spike way past the IP bid price?

[moorsie2] 03/11/2024 11:28

I see IP getting to 65 dollars by early Q2 due to strong progress in fixing underlying issues by new CEO never mind the cyclical tailwind

That would give a 20-25% uplift to Smds prices from here...

[ygor705] 31/10/2024 15:10

Good news Moorsie and the growth in the share price is ahead of what even you were forecasting earlier in the year. What a change from the dull old days of DS Smith. A good acquisition for a change. Smurfit also going well.