Cigno & Anatra Co

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August 18, 2017 at 5:36 am #402302
nickstar
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Dear Sir,

In the Sep/Dec2015 paper Q1, the value attributable to Anatra’s shareholders is the MV of equity, debt and the premium. Why would the MV of debt be included in this calculation? Wouldn’t the debt still be there after the acquisition?
August 18, 2017 at 11:26 am #402349
John Moffat
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The 128M is the difference between the total value of the company before and after, and this increase ‘belongs’ to the shareholders.
(They both include the debt, so if you want subtract the debt from both and the difference (going to equity) is till 128M)
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