Phaceliacapital Posted May 6, 2015 Share Posted May 6, 2015 Does anyone know the following: From a tax perspective, what happens when I, as an EU investor, buy the US ADR of a Mexican company that is going to do a spinoff whereby I receive one share of the spun off entity for each ADR I own? Thanks in advance. Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted May 6, 2015 Share Posted May 6, 2015 I'm certainly no expert, but I thought that most spin-offs were done with 0 tax consequences. I could be wrong though - all of the spin-offs I've participated in so far have been in tax-free/tax defferred accounts so I don't have any direct experience. edit: just realized that the ones I participated in weren't ADRs and were simply the foreign shares trading pink sheets in the U.S. Sorry that this doesn't apply :/ Link to comment Share on other sites More sharing options...
Hielko Posted May 6, 2015 Share Posted May 6, 2015 You should check how the ADR intends to handle the spin-off. It is possible that they will simply sell the shares of the spin-off and distribute cash. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now