- This topic has 2 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
Sir, my problem is with the different approach taken in the two questions, Sigra Co (12/12) & Hav Co (6/13) for the calculation of the percentage premium per share that the acquirees shareholders will receive.
Both questions we had synergy benefits after acq and we had a share for share exchange option, however in Hav Co it includes cash amount per share.In Sigra Co, we added the equity value of both companies with the synergy benefits and divided it with the number of shares in the combined entity, then multiplied it with the ratio of share for share exchange to get the notional value of the acquirees shares.
However, in Hav Co we just multiply the current share price of the acquiror to the ratio of the share for share exchange and add the cash amount per share to get the notional value of the acquirees shares.
I followed Sigra co approach here and then added the cash amount per share to get a completely different value.Why are we following different approaches here?
Oh got it, thanks sir! https://opentuition.com/topic/hav-co-june-2013/
As usual explained beautifully!Don’t know what happened, I usually search a topic before posting it 🙂
- The topic ‘Share for share exchange premium calculation for targets shares’ is closed to new replies.