Nowhere have I seen any comment on the tax consequences of the New Europe Property Investments/Rockcastle merger for SA individual shareholders. As shares-for-shares mergers in SA generally don’t trigger immediate tax liabilities, this one is going to come as a surprise to many. As a long-term holder of both shares, I effectively take an 11% haircut on my holdings to fund the resultant tax liability. I suppose there’s lesson to be learnt here regarding the risk of unforeseen consequences arising from corporate action in foreign-registered companies where the effect on SA individual shareholders isn’t a consideration. John Richards Noordhoek
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