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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.

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February 22, 2021 at 4:38 pm #611334
bbzhao
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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
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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,
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