Specifically for shareholders:
My question is thus, I now see this Viatris company listed under my Vanguard portfolio and the transaction is listed as "corp action", however its cost basis mirrors the cost basis of my original Pfizer shares (Long term shares) as well as the Pfizer share price/gains at time of purchase years ago. I have not lost any Pfizer share holdings with this activity. Am I correct to assume, regardless of the cost basis Vanguard is indicating, these new shares into Viatris will be treated as distributed income and I should account for it as such? I haven't found much discussion on this type of corporate activity when it relates to taxes for shareholders. Or should I account for something else entirely?Under the terms of the transaction, which was structured as an all-stock Reverse Morris Trust, Upjohn Inc. was spun off to Pfizer stockholders by way of a pro rata distribution and immediately thereafter combined with Mylan. The combined company was renamed “Viatris” in connection with the closing. In the distribution, Pfizer stockholders received approximately 0.124079 shares of Viatris common stock for every one share of Pfizer common stock held as of the close of business on the record date (which was November 13, 2020). In addition to the Viatris shares received in the distribution, Pfizer stockholders retained as of the closing the same number of shares of Pfizer common stock as they held immediately prior to the transaction. As of the closing of the combination, Pfizer stockholders owned approximately 57% of the outstanding shares of Viatris common stock, and Mylan shareholders owned approximately 43% of the outstanding shares of Viatris common stock, in each case on a fully diluted, as-converted and as-exercised basis.
Viatris (Nasdaq: VTRS) will begin trading tomorrow, November 17, 2020.