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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Sigra cont'd.
If we are to pay via share exchange to dentro shareholders, then why are we including the synergy benefit? Shouldn’t synergy benefit be included in the valuation of the company after the dentro shareholders are paid? Or to calculate the highest price which Sigra should pay for Dentro?
So… With that is it ok to assume that the dentro shareholders at present would be paid with a share valued at $3.6 excluding synergy?
Dentro end up with shares in Sigma. The value of the shares in Sigra will be the value after the acquisition has taken place, which will be the new market value of the Sigma shares.