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sir
for this question i have a doubt
in the share for share offer
they are saying that 55.5 % of additional value is allocated to tai and 44.5 is allocated to opao.
and in the answer the share price of 0pao has increased to 2.66.
so in this step, 2.66* 2 shares – 3.8 * 1 share / 3.8 = 40 %
i have a doubt . after acquisition the share price of opao went upto 2.66 from 2.5 .. and shareprice of tai increased from 3.8.
but for the working shown above theyhave used 3.8 instead of the post acqn share price of tai
can you please eplain$3.80 is the MV of share in Tai before they are acquired by Opoa.
After the acquisition, Tai no longer exists and their shareholders receive 2 shares in Opoa which are worth 2 x $2.66 to replace their 1 share in Tai which was worth $3.80.
There is no post-acquisition price of share in Tai because Tai does not exist after the acquisition.
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