Takeovers, share splits, consolidations, name or code changes and delistings are all corporate actions. They are decided by the company, not by Selfwealth. In most cases you don't need to do anything, and your Selfwealth portfolio updates automatically once the change takes effect.
The company's announcement and its share registry are the official source for dates, ratios and payments. You can read announcements on the Selfwealth website or the mobile app.
What happens to my shares?
| Event | What happens to your holding | What you need to do |
|---|---|---|
| Takeover, merger or scheme of arrangement | Once the deal is implemented, the shares are removed from your portfolio. You receive cash, shares in the acquiring company, or both, as set out in the announcement. | Nothing for a scheme of arrangement. For a takeover offer you choose whether to accept, see below. |
| Share split | You hold more shares at a lower price. For example, in a 5-for-1 split, 10 shares become 50. The total value of your holding stays about the same. | Nothing. Check your average price afterwards. |
| Consolidation (reverse split) | You hold fewer shares at a higher price. For example, in a 1-for-10 consolidation, 100 shares become 10. Fractions are rounded or paid in cash under the company's terms, so a very small holding can reduce to zero. | Nothing. Check your average price afterwards. |
| Name or code change | Your holding moves to the new name or code. The number of shares doesn't change. | Nothing. Search for the new code to trade. |
| Trading halt or suspension | Your holding stays in your portfolio, but it can't be bought or sold until trading resumes. | Wait for the company's next announcement. |
| Delisting | The company is removed from the exchange and the holding no longer appears in your Selfwealth portfolio. | Contact the share registry, see below. |
When will my portfolio update?
- ASX shares: usually on or shortly after the effective date in the company's announcement. New shares appear in your portfolio the business day after the share registry issues them to your HIN.
- US and Hong Kong shares: changes are applied by our international broker and can take a couple of business days. US changes usually show before the US market next opens.
While a change is being processed, the number of shares, value or daily gain for that holding may look wrong for a short time. Your actual entitlement isn't affected.
Where is my cash payment from a takeover?
For ASX shares, cash from a takeover, scheme or buy-back is paid by the company's share registry, not by Selfwealth. It is paid using the payment instructions the registry holds for you, which is usually the same account your dividends are paid to. If the payment hasn't arrived by the payment date in the announcement, contact the share registry. See What is a share registry?
For US and Hong Kong shares, cash is paid into your Selfwealth USD or HKD cash balance.
What happens to my open orders, average price and sale proceeds?
- Open orders: the exchange cancels open orders when a corporate action takes effect. Place a new order once the change is complete. If you can't amend or cancel an order during a code change, contact us and we'll cancel it for you.
- Average price and profit/loss: these aren't adjusted automatically after a split, consolidation or code change, and the average price may show as $0. You can update it yourself. See What is the 'average price' and how do I update it?
- Sale proceeds: if you sell while a stock is trading on a deferred settlement basis, your funds are released on the date in the company's notice, not the usual two business days. See What is the 'Reserved Cash' balance?
My shares were delisted or have disappeared from my portfolio
Delisted shares aren't shown in your Selfwealth portfolio because they no longer trade on an exchange and have no market price. If the company was taken over, you'll have received cash or new shares instead. Otherwise you may still own the shares, and the share registry keeps the record of your holding.
- You can't sell delisted shares through Selfwealth.
- Contact the company's share registry to confirm your holding and what happens next. To find the registry for a delisted ASX company, search the company on the ASX historical announcements page.
- If the company is in administration or liquidation, ask your accountant when a capital loss can be claimed. Selfwealth can't give tax advice.
- If a US stock moves from its exchange to an over-the-counter (OTC) market, it can't be traded online. Contact us and we'll check what options are available.
Do I need to accept a takeover offer or other offer?
A scheme of arrangement is automatic once shareholders and the court approve it. A takeover offer, buy-back, rights issue or share purchase plan is optional, and the offer documents sent by the company or its share registry explain how to respond and by when. Selfwealth can't accept an offer for you unless you instruct us. If the offer documents ask you to instruct your broker or CHESS sponsor, contact us with your instruction well before the closing date.
The company is selling my small holding
If your holding is worth less than $500, the company may sell it for you through a small holding (unmarketable parcel) sale facility unless you opt out. The notice comes from the share registry, and you respond to the registry directly.
Who should I contact?
- The share registry: payments, entitlements, offer forms, holding statements and anything about a delisted company.
- Selfwealth: if your portfolio still looks wrong a few business days after the effective date. Contact a Customer Advocate via live chat or at support@selfwealth.com.au with your Selfwealth ID, the stock code and a screenshot.