The news item is about two weeks old. When Saverys family acquired Fredriksen’s stake in Golden Ocean (GOGL), they initially suggested the company would be kept separate from CMB-tech (CMBT) - the consolidated entity with most of their shipping interests
That idea didn’t last. Per above, CMBT will swap GOGL shares with 0.95 CMBT shares per GOGL share. I have a tiny GOGL stake. Will let them swap my shares, and then dispose of my CMBT shares.
I should add a point of clarification. My GOGL stake is owned in a Roth ac. I have not been concerned about withholding to date. But, CMBtech (CMBT) is a Belgian based company, and Belgium has withholding. Then again, the last dividend that CMBT paid was in July 2024
More thoughts on the merger–
https://seekingalpha.com/article/4779645-cmbtech-and-golden-ocean-merger-leverage-risks-liquidity-gains-and-the-underlying-opportunity
If a few marine sectors are clicking, the combined entity could easily generate $2.5B in revenue, with very nice margins. I was not aware of the the Saverys holdings in CMBT. I was initially thinking it was in the 50% range. But apparently it is a lot greater.
Thank you very much for this. I guess I have a decision to make with my Roth GOGL.
JimA
@JimA759s - With the huge share count, it might be awhile prior to a significant dividend. But again, the risk will exist that there will be Belgian withholding, and no way to get it back
I don’t have a huge number of shares but is there somewhere to find out about the Belgian withholding? Is there a minimum value below which there is no w/h? The merger is likely in the 3rd Qtr - so I can hope to get a June distribution and then sell? I suppose I could wait and see how the CMBT distributions go and what the hit is. I really don’t like selling shares once I’ve decided to buy something. Sometimes it works and sometimes I feel the pain. (CORR/CBL/Unit/etc)
JimA
@JimA759s - The Belgian withholding is quite high - IIRC, 30%. Suppose one owned 100 shares of CMBT and they declared a $1 dividend. When the CMBT payout date came, there would be two entries
Dividend $100
Withholding tax -$30
So you would Net $70 with no way to recapture the $30. If CMBT were held in a taxable ac, one could recapture 50 - 100% of the withholding.
Thank you; I guess I’ll just have to learn how to sell things!
JimA