Will Disca/k shares be converted to Newco shares automatically, or will Freetrade simply not add newco to the platform and give us a cash payment instead ? I’m concerned that the new merged company won’t be added to the platform and I’m currently down 18% on disca so I certainly don’t want my shares sold for a loss .
Hi @ravii_97
With all deSPAC mergers you’re existing shares will be transferred over to the newco as per the arrangement. The app will update with a new icon and name, you do unfortunately loose the trading history of the SPAC.
Thanks for the reply, but discovery isn’t a spac. AT&T is spinning off its Warner media subsidiary to Discovery to form the newco. It’s called a reverse Morris trust transaction. Has Freetrade ever handled something like this as far as you’re aware ? @Freetrade_Team
Oh sorry my fault everything is a SPAC these days!
The only time I can remover this happened was with Pfizer when they spun off Viatris (had to search for that name) Looks like it was all handled fairly seamlessly at the time so I’d say you should be okay.
Thanks Neil !
IBM and Kyndryl was also handled alright. So should be okay, I think.
And Realty Income spinoff. We got shares in the spinoff and they are weirdly valued as bought for £0 so my % gain is infinite.