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Sir, I would like to understand the rationale of this part
In sigra, I understood that the value of current share price does not include the synergy and so we make adjustments for the share price to reflect that.
But then in Hav Co, the second option, the share price is not adjusted for synergy.
I’m really sorry, but I am finding this really difficult to understand.
Have you looked at my previous answers to others who have asked the same question? (there is a search box on every page).
It depends whether you are looking at it from the point of view of the acquiring company, who will be able to esteem the future share price, or from the point of view of the shareholders in the target company, which will not have access to the information and will therefore base their decisions on the existing share price of the acquiring company.
If it is not clear in the question as to from whose point of view you are expected to discuss, the (as always in AFM) state your assumption and you will get the marks.
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