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- This topic has 3 replies, 3 voices, and was last updated 3 years ago by John Moffat.
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- November 12, 2020 at 9:47 am #594784
Hi John
Can you please help with this query?
The value of Cigno after the acquisition of Anatra becomes $128m
(This is before the potential tax and redundancy savings).However, I must be missing something as I know that:
Value of Unbundling the manufacturing is $5,594, and
Value of Anatra is $31,884So how is the $128 been derived?
Thank you.
November 12, 2020 at 3:36 pm #594802The total value of Anantra following the unbundling of manufacturing and absorbing medical R&D is $37,478 (5,594 + 31,884)
The total value attributable to Anatra’s investors is $37,350 (21,000 + 9,000 + 7,350 (premium))
Therefore the value attributable to Cigno’s shareholders is 37,478 – 37,350 = $128.
March 2, 2021 at 7:48 pm #612821Hi John
A small question on the above.
Why is it that the $128m is attributable to shareholders?
As the company’s capital split post acquisition is debt to equity 40:60 surely only 60% of the $128m is attributable to the shareholders and the remainder to debt holders.
Thanks in advance
March 3, 2021 at 8:55 am #612926Any gains due to synergy etc. only ever go to equity, never to debt.
The ratio of debt to equity is needed in order to calculate the cost of capital – how they manage to achieve that ratio is not relevant.
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