Scheme of arrangement
Corporate actions such as schemes of arrangement and share buybacks involve a company repurchasing shares from its shareholders.
To run a scheme of arrangement or share buyback, follow the instructions based on whether the buyback applies to the full or partial position.
Full position buyback
If the buyback applies to 100% of a shareholder’s holdings, use the corporate action workflow to process the repurchase:
(Optional) If only a part of shareholders are taking part, create a group of portfolios that are involved in the corporate action.
Go to the Groups view and click Add.
Select "Static group".
Enter the group properties in the Basic info and choose the portfolios to include in the group in the Portfolios tab.
Create a corporate action (New → Corporate action → Other):
- Corporate action type*
Enter "Scheme of arrangement", "Share buyback" or another name to identify the corporate action type and search for the corporate action in the Corporate actions view.
- Security*
The security that is purchased back.
- Amount per share
The amount to pay out to the shareholders. Specify the amount per unit of the security.
- Transaction type
The transaction type for the transactions to be created. For scheme of arrangement, create a transaction type that is the same as Dividend (DIV) and has the Amount effect = "Reduce amount". Give it a descriptive name. For details about creating a transaction type, see Transaction types.
Run or schedule the corporate action for all portfolios that own the asset or for a selected group you created in Step 1.
Partial position buyback
If shareholders sell back only part of their holdings, use the Create transactions from positions option in the Positions view to process partial buyback.