Apportionment of tax cost base of The Carphone Warehouse Group PLC shares

Based on the share prices of TalkTalk Telecom Group PLC (TALK) and “new” Carphone Warehouse Group plc (CPW) on the 29th March 2010, the base cost in “old” The Carphone Warehouse Group PLC for UK capital gains tax purposes should be allocated 63.90% to TALK and 36.10% to CPW.

Shareholders will need to give consideration to the proportion of shares provided at demerger when one CPW share and two TALK shares were allocated for every two “old” The Carphone Warehouse Group PLC shares.

Example
If shares were acquired in "old" The Carphone Warehouse Group PLC at a price of 182.25p, then this would be allocated for UK capital gain tax purposes as follows:

  % Allocation Purchase price Allocation of purchase price Demerged cost base
Carphone Warehouse Group plc 36.10 182.25 65.79 131.58
TalkTalk Group PLC 63.90% 182.25 116.46 116.46
      182.25