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I couldn’t understand how “payment to the shareholders under MBO” of $ 60 million is calculated under proposal 3.please explain it.
Thanks in advance.
The par value of the shares (from the SOFP) is 40c per share, and in total is $40M. So there are 100M shares.
The last sentence of the first paragraph of the shares says that the current market value of the shares is 50c.
The last sentence of the details for proposal 3 says that the shares will be re-purchased at a premium of 20%. So they are paid 50c + 20% = 60c per share.100M shares at 60c per share = $60M
Hope that helps 🙂
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