BLL (Ball) is taking over REXMY (the ADS) and Rexam. This is unusual in that the HQ will be in the US, unlike the common tax inversions. It may be an old fashioned merger. I hope so, and that the basis for the REXMY carries over to the new BLL shares that you get.
Before June 22 you can request to take all cash, all stock or a mix. There will be a default based on what everybody else does. There will be a 5 cent ADR fee for each REXMY tendered, but I suspect there will be the same or similar fee for those who take the default. I did not try to understand all of the details.
REXMY will soon stop trading, and you will get your BLL (new issue shares), cash, or both. When that happens, this forum will disappear -- not that many will notice.
Another correction to what I wrote: Shire is Incorporated in the country of Jersey. So it appears there is no ax withholding of dividends. This means that the investment will be suitable for a US IRA, and that holdings in a US taxable account will only have to pay the regular tax on dividends. While I expect these to be "qualified" dividends, I am not sure.
Each SHPG ADS represents 3 ordinary shares. If you are in the US, there will probably be a fee that is not deductible for most taxpayers. But if you get the London listed SHP shares, I expect your broker will charge a currency translation fee that is bigger than what the ADS bank charges.
Either way, expect income tax to be "withheld" at 20%. No small investor will get this refunded, though it will be partially or fully credited toward US taxes for many US taxpayers. If the shares are in an IRA, I think this tax is paid from the IRA. There are some countries that do not withhold income tax for US IRAs, I think Ireland still takes their 20%. This tax extraction is part of the motivation that Ireland gives the companies a good deal to attract them to move in from the US.
My info may be old, or maybe there are factors I don't understand.
Blake E. Devitt (Baxalta director) tendered 9231 shares of BAX. At the 3.6178959% proration rate, that would mean 333.967970529 shares would be converted, and I expected that either the conversion would be for the full amount with CIL for the extra 0.967970529 shares, or the number would be truncated to 333. He got 334 shares converted. Therefore I think the number was rounded.
Then the 334 shares would be converted to 387.1394 new BXLT shares. I presume that generates CIL on the 0.1394 shares. But I am not sure.
The shares of BXLT then converted to SHPG at the rate of 0.1482 SHPG plus $18 for each BXLT. This would be a second CIL. Is the CIL going to be somehow combined, or will there 2 separate CIL entries? Don't know. Have not seen any CIL yet.
Two corrections to my post:
1. It was blackoutbuzz that was describing the Shire event as probably fully taxable to the shareholders. Things often do play out has he described.
2. Only those BAX holders who tendered shares in search of the bonus had BAX shared converted to BXLT this year. The tender offer was oversubscribed due to a bonus, but I may regret taking that offer. The tax return effort and the tax itself may be worse than the bonus factor was good.
Trying to read the documents, I still am not sure. For BAX shareholders, there was an additional step. Some of their BAX shares were converted to Baxalta (BXLT). I think that step was tax free, except for any CIL. These Baxalta shares would have been added to the Baxalta spinoff shares that were distributed 1:1 June 1, 2015, which was tax free.
The Baxalta shares were converted to Shire (Ireland) shares plus cash.
Tax: I am still working on this. I think Samideis thinks that the Baxalta shares are all treated as having been sold, and some of the proceeds used to buy 0.1482 Shire shares for each BXLT share that was held. I had read stuff about tax rulings that make sure this was done in a non-taxable way, but maybe that was only with regard to what was taxable to Baxter and to Shire. I still have hope. Even though my broker seems to look at this as taxable, the accounting at the broker often has a delay before the actual reporting gets worked out. Ideally the Baxter or Shire will put a readable document on the website because making life easier for their investors is important to them.
Tax inversion deals that are fully taxable to the shareholders are common. I hope that Samideis is being pessimistic in this case.