Dollar Tree completed its merger with Family Dollar on 7/6/15 for cash and Dollar Tree stock.
The S-4/A SEC filing for this merger was found in the Investor Relations section of the Dollar Tree web site.
This merger is a cash plus stock reorganization. For tax purposes this is treated as a sale of Family Dollar and some of the proceeds used to purchase Dollar Tree. All the information below is from the information available from the S-4/A filed with the SEC.
1. Sell Transaction
The total merger consideration is $79.3230 per Family Dollar share. This is $59.60 in cash and $19.7230 in Dollar Tree shares (.2484 x 79.40). The opening price of Dollar Tree on the merger completion date was $79.40. Calculate the total value received for your Family Dollar shares by multiplying 79.3230 by the total shares of Family Dollar owned.
Total Proceeds = [79.3230 x (# of Family Dollar shares owned)] – (Reorganization fee).
Use the Suspense account to receive the sale proceeds.
Date this transaction 7/6/2015
2. Transfer Cash Received
Transfer from the Suspense account to the Broker (or bank if appropriate), all merger cash received from this transaction. This will be the sum of the $59.60 per Family Dollar share. If you were charged a reorganization fee, the cash transferred will be less by the amount of the fee. If your Suspense account balance was zero when you entered the sell transaction above, then the balance after transferring the cash received will be the total purchase price of the Dollar Tree shares you received in this merger.
3. Buy Transaction
Enter a Buy transaction for the number of shares entitled to receive in this merger. This will be .2484 x (# of Family Dollar shares owned). For example if you owned 100 Family Dollar shares then enter 24.84 shares purchased (.2484 x 100).
Date the transaction 7/6/2015. The total purchase price will be the amount remaining in the Suspense account, if the Suspense balance was zero when this process was started. The amount should be (19.7230 x # of Family Dollar shares owned. For example, if you owned 100 Family Dollar shares, then the total purchase cost would be 1972.30.
Choose the Suspense account as the source of finds for the purchase.
Save the Buy transaction.
4. Fractional Share Sale
The fractional shares received in this merger will likely be sold by your broker.
Enter a Sell transaction for the fractional shares dated 7/7/2015. The share amount will be the NON-whole part of the shares bought in the Buy transaction above. For example if you owned 100 Family Dollar shares then you entered 24.84 shares purchased. You would sell .84 shares in this Sell transaction.
The total proceeds will be the cash-in-lieu amount listed on your broker statement.