USFB is a subsidiary of UFS. However UFS is getting merged with USFB. This is called reverse merger. After the merger is complete, the shares of UFS with be dissolved. To compensates the shareholders of UFS will receive shares of USFB. The ratio will be 116 shares of USFB for every ten shares held in UFS. This ratio is called swap ratio.
This swap with be tax neutral. This means that the holding period of the new USFB shares will be calculated from the date of purchase of UFS shares and the cost of buying new USFB shares will be also be calculated according to the purchase price of original shares.
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