Hanson - Apportionment on Demerger of Imperial Tobacco Group PLC
and Millenium Chemicals Inc on 1 October 1996 

  1. For Capital Gains Tax, the tax base cost of Hanson PLC shares held 1 October 1996 should be apportioned between the three shareholdings after the demerger: Hanson, Millenium Chemicals Inc and Imperial Tobacco Group PLC.
  2. The shares were distributed in the ratio of: 
         1 Millenium Chemicals Inc share for every 70 Hanson shares held and
         1 Imperial Tobacco Group PLC for every 10 Hanson shares held.
  3. The apportionment is calculated by reference to the relevant prices of Hanson and Imperial Tobacco Group PLC shares on 1 October 1996 and Millenium Chemicals Inc shares on 2 October 1996:
         Hanson 93.25p
         Imperial Tobacco Group PLC 390.5p
         Millenium Chemicals Inc $22.0625 @ $1.56555:£1
  4. Thus the tax base cost of Hanson shares held on 1 October 1996 should be divided as follows:-

 

         Hanson                                         61.175% 
         Imperial Tobacco Group PLC       25.618%
         Millenium Chemicals Inc              13.207%