NET ASSET APPORTIONMENT
Redcape Hotel Group stapled security comprises two separate assets for capital gains tax purposes, being a security in Redcape Hotel Trust I (RHT I) and a security in Redcape Hotel Trust II (RHT II).
For capital gains tax purposes, Securityholders need to apportion the cost of each stapled security and the proceeds for sale of each stapled security over the separate assets that make up the stapled security. The apportionment should be done on a reasonable basis.
One possible method of apportionment is on the relative net assets of the individual entities where the Directors Net Asset Value (NAV) per entity is used.
The relative split as at Oct 21 is 73.13% for RHT1 and 26.87% for RHT2.
The Group believe that Directors Net asset Value is a more appropriate apportionment bases than statutory Net Asset Value which was used historically.
On 2 November 2021, Redcape Hotel Group delisted from the Australian Securities Exchange (ASX: RDC). Further net asset apportionment information for investors can be found at Redcape Hotel Group – MA Financial Group