What happens to shares during a merger?

[CRTB]

Apologies if this is a really basic question, but I'm very new to this and only started trading this year.

2 of the companies I hold shares in (Andromeda Metals and Minotaur Exploration) are listed on the Australian exchange, and I've read this morning that they are soon to undergo a merger - subject to shareholder and regulatory approval - with Andromeda buying out Minotaur.

What happens to my Minotaur shares in my IG account? Do they just magically become more Andromeda shares in the same account, at the proposed rate of 1.15:1? I'm assuming that yes, that is the case and it'll all just be magically done with nothing for me to do, but just want to check as this is the first time I've owned shares in a company which has undergone such a process.

Thanks in advance.

[ArvinIG]

7 hours ago, CRTB said:

Apologies if this is a really basic question, but I'm very new to this and only started trading this year.

2 of the companies I hold shares in (Andromeda Metals and Minotaur Exploration) are listed on the Australian exchange, and I've read this morning that they are soon to undergo a merger - subject to shareholder and regulatory approval - with Andromeda buying out Minotaur.

What happens to my Minotaur shares in my IG account? Do they just magically become more Andromeda shares in the same account, at the proposed rate of 1.15:1? I'm assuming that yes, that is the case and it'll all just be magically done with nothing for me to do, but just want to check as this is the first time I've owned shares in a company which has undergone such a process.

Thanks in advance.

Hi @CRTB,

The Corporate Action is in charge of this type of events. If there's anything you need to do you will receive an email form the Corporate action. Otherwise, they will book your new shares on their end. You might see your shares sold at 0 and bought back at 0. That would mean that they Corporate action took place. 

If there is a ISIN number change, it will be done on our end too.

All the best - Arvin