• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

Share for share exchange

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Share for share exchange

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 10, 2016 at 5:42 pm #305359
    Robert
    Member
    • Topics: 57
    • Replies: 174
    • ☆☆☆

    John, will you help me with this please?

    If predators share price is currently £2 and they offer the target company’s shareholder 1 share for their 1 share. Then is the valuation of the offer £2 or will it be lower than £2 given that the MV of the predator will stay the same but the number of shares in the predator will have increased?

    Thanks
    Robert

    March 11, 2016 at 7:23 am #305460
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54761
    • ☆☆☆☆☆

    Hold on! Although the predator will have more shares in issue, the total value of the predator will increase because they now own the target!

    Shareholders in the target will likely regard the offer as worth $2, but when the predator decides how many shares they can afford to offer they will be taking into account any synergy benefits they foresee (which would make the total market value higher after the acquisition).

    March 11, 2016 at 9:03 am #305486
    Robert
    Member
    • Topics: 57
    • Replies: 174
    • ☆☆☆

    Thank you John 🙂

    March 11, 2016 at 9:55 am #305504
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54761
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • zurapirveli@gmail.com on Basic group structures – Impairment – ACCA (SBR) lectures
  • Sid24012003 on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on FM Chapter 8 Questions – Relevant cash flows for DCF
  • slovett on FM Chapter 8 Questions – Relevant cash flows for DCF
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in