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This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages) The examples and perspective in this article may not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (November 2024) (Learn how and when to remove this message) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Scrip bid" – news · newspapers · books · scholar · JSTOR (November 2024) (Learn how and when to remove this message) (Learn how and when to remove this message)

In Australia, a scrip bid is a takeover offer where shares are offered partly or wholly in place of cash. This means that, if a take over bid is accepted, shareholders in the target company will receive shares in the new merged entity. This has advantageous tax implications for investors as gains on the sale of shares acquired on or after 19 September 1985 are subject to capital gains tax. By receiving shares instead of cash the realisation of the capital asset can be delayed to take better advantage of capital loss offsets. Additionally, tax payers are only taxed on half the capital gain if they hold the asset for more than 12 months.

References

1. ^ "Scrip offers in takeovers" (PDF). Financial Markets Authority.

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