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Dear Sir,
usually additional value created is calculated as following:
Combined co Equity value Less individual co equity value.
In case of cigno if we are saying that 37478 is combined co value then why are we not deducting cignos equity value of 36000 and ofcourse after deducting anatras equity value it will give us a negative figure.
in all other valuation qs additional value is calculated this way.
Is this qs like Westparley from m/j 2020 where it is not the combined co value thats given but only the anantra value that is given post acquistion. There must be cignos cashflows also which is not provided to us.
For eg is the value of 37478 just anantras value post acquisition which does not include cignos cash flows and hence deducting individual companie equity value from 37478 is wrong and plus it will give us a negative figure.
$37,478 is not the combined company value. It is the value that Cigno will place on Antra (it is the value of the future cash flows that will come from Antra).
$37,350 is the amount they will have to pay to acquire Antra.
Therefore the surplus of $128 is the amount by which Cigno’s shareholders will gain.
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