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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Acquisition & merger
Respected sir,
If there is a mixed offer in an acquisition that is cash + share-for-share
Then to calculate the % gain in shareholders value of the acquired Co.
The value per share used will be that of the post acq. Co.?
I mean how to calculate a value per share that will be used in the calculation.
I bit confuse in this type of arrangement.
If the question is asking which offer the shareholders in the target company will be prefer then it will usually be the pre-acquisition share price of the acquiring company that is relevant (because the shareholders in the target company will not have the information needed to be able to estimate the post-acquisition share price of the acquiring company).