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Explained to my broker the rationale behind the deal, the Woodside London listing and so on. They said that's all very well but that the Woodside entitlement credited to me was ASX listed stock. Can't hold that in my account therefore sold for cash.
Kind of defeats the object of the exercise if this turns out to be the case for many holders - why couldn't they arrange for entitlements based on the new London listing ? Oh well.
Further thought.
Have those holders who have received WDS shares without problem confirmed on which exchange those share are listed. For example I know that ii accepts Australian shares in their accounts - so might those shares be ASX ?
Trying to work out whether this is partly a case of the location listing rules for various platforms or partly whether different brokers have been more proactive than others in sorting this out.
As of today, Woodside are trading on the LSE. See the Woodside RNS here :- https://www.londonstockexchange.com/news-article/WDS/admission-to-trading-on-the-london-stock-exchange/15481468
They are a 'depository interest' on LSE
I'm unsure what "depository interest'" means.
However, a small quote from the RNS, which to me means something.
ADMISSION TO TRADING ON THE LONDON STOCK EXCHANGE
The entire issued share capital of Woodside Energy Group Ltd (Woodside) has today been admitted to the Standard Segment of the Official List of the FCA and to trading on the Main Market for listed securities of the LSE under the ticker "WDS".
This follows completion of the merger transaction between Woodside and BHP Group Limited's petroleum business, announced on 1 June 2022.
Note "Trading on the London stock exchange"
Crest Depository Interests are UK securities representing an underlying interest in an overseas security.
But are tradeable in/from the UK ? yes ?
It looks like some brokers don't allow this type of holding ?
that is the question, I have already been told that I will receive cash because Woodside are on the AUX market.
A CDI is an electronic reflection of the underlying security held in the domestic market - in this case Australia.
https://www.ig.com/uk/investments/support/glossary-investment-terms/crest-depositary-interest-definition#:~:text=CDIs%20can%20be%20settled%20through,and%20are%20traded%20off%2Dexchange.
This comes under the heading "read the small print" (if it's written)
When BHP came off the FTSE ii stopped re investing my BHP dividend (never told me) I found out the hard way....
I believe CDI's are traded within CREST - in other words shares in your name rather than in a nominee account
Thanks longtimeinvestor, now you have used the correct term, I went on ii and this is what they say :-
International Crest (CDI) shares
Other UK brokers tend to trade international shares through the London market and hold these as CDIs. At Interactive Investor, we trade directly on local international markets and hold the local version of the share for you.
Where international shares have been transferred to us, it may be that the share is still held in CDI form. These CDIs can be converted into the local version of the share at your request. Please contact us if you would like to convert a CDI.
You will not be able to purchase any further holding of the CDI version. Please call us if you wish to sell a CDI holding.
You learn something every day.
This is interesting. It seems to me that what should have happened is that the Woodside London listing was organised and well up and running BEFORE the in specie dividend was allocated to BHP shareholders.
That way when the dividend arrived in your accounts broker says ah yes X is entitled to Y shares here you go. The CDI is an extra complication but basically if your platform didn't allow ASX equities at the date of payout then computed said NO.
''if your platform didn't allow ASX equities at the date of payout then computed said NO.''
My platform only deals in UK and US equities, so I have been told I am getting cash.
Also some platforms may not deal with CDI's which I believe are traded within crest directly between market makers
I’m with ii having been merged in from Alliance Trust Savings a while back. ii do seem pretty well organised with dealing on many international exchanges. You do get the odd glitch, like today when I suddenly “had” an extra £0.5M after my Amazon shares (stock split x20) total were updated before the US market opened and they appeared to have 20 times the value! Was nice while it lasted.
Doing my own SIPP has been a bit of an education as various companies have moved domiciles, or like BHP, come out of the FTSE (but still London traded) meaning that dividends come from Australia and (I am told) don’t have any withholding tax, unlike say Nestle in Switzerland where I gather it’s over 30%. Not any sort of expert on this topic, but learning as I go along.
BHP certainly has some interesting prospects. Ian Cowie piece in yesterday Sunday Times flags up the potash opportunity from their Canada mine.
atb
Well, checked my Barclays Smart Investor and still no sign of WDS in my ISA. Pretended I was going to buy some WDS out of nosiness and it found WDS code but said last closing price was 1p! Obviously Barclays lagging behind a bit as regards WDS...
Update.
Well in spite of them saying earlier in the week that I was getting cash I've now seen that I've been credited with WDS DIs.
Good news but I've asked them to clarify the next and hopefully the last step - will the DIs be converted - eventually, automatically, upon request ? - into standard LSE stock. It's not an issue right now as in all respects DIs have the same value as the underlying equity and are quoted in £ but we don't want any issues down the line with regards to dividend declarations, tax charges / complications and so on. Again this may or may not be an issue but given the choice I'd rather have good old plain LSE stock.
I'm guessing that everyone that has been issued with WDS stock is in the same situation whether they realise it or not.
We are all a trip into the unkown.
Dividends will be an interesting journey. Personally, when (not if) Woodside pay their next divi (23rd Sept) I'm expecting them (ii) to payout in the normal way, although I'm unsure if they will automatically re invest (they don't for BHP)
Only time will tell, but this is where this board comes into it's own. If we all recount our stories, we get a bigger picture.
lti
Mon 14:47
''I have been told I am getting cash.''
some confusion - prior to getting last letter stating I was getting cash, a letter did state the number of woodside that shareholders would receive.
Just looked - the Woodside shares are now in my account, but at the moment (don't know if permanent) I am only allowed to sell them and not buy.
hj
''I've been credited with WDS DIs.''
because that is what they are.
As well as woodside, my BHP holding is also a DI in my account.
some providers though may allow the holding of shares directly on the ASX