20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

Mar/Jun 2016 Q2 Louieed; Share-for-share option

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
February 22, 2021 at 4:38 pm #611334
bbzhao
Member
- Topics: 9
- Replies: 1
Hello Sir
In the requirement, we need to calculate the share capital for Louieed Co after the acquisition, for the offer: two Louieed shares for one Tidded Co share, the share capital would be 340m+90m*2
I don’t understand 90m*2
What if it is five Louieed Co shares for three Tidded Co shares?
February 22, 2021 at 5:33 pm #611353
John Moffat
Keymaster
- Topics: 57
- Replies: 54470
There are 90million shares in Tidded. Given that the offer is 2 shares for every 1, they will be given 90 x 2 = 180 shares.
If they were to be given 5 shares for every 3, then they would be given 90/3 x 5 = 150 million shares,
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.