Scribd Logo
Upload

Welcome to Scribd!

  • Mini Case On Mergers and Acquisitions

    Uploaded by

    Digvijay Diggi
    105 views1 page
    The acquiring company is considering acquiring the target company through a stock-for-stock transaction where the target company shareholders would receive Rs. 85 per share of their common stock. Using the provided financial information for both companies and assuming no earnings growth or synergies from the merger, the summary calculates: the purchase price premium, exchange ratio, number of new shares issued, post-merger EPS, pre-merger EPS for each company, pre-merger P/E ratios, post-merger share price, and post-merger equity ownership distribution.

    Original Description:

    Original Title

    Mini Case on Mergers and Acquisitions

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The acquiring company is considering acquiring the target company through a stock-for-stock transaction where the target company shareholders would receive Rs. 85 per share of their common stock. Using the provided financial information for both companies and assuming no earnings growth or synergies from the merger, the summary calculates: the purchase price premium, exchange ratio, number of new shares issued, post-merger EPS, pre-merger EPS for each company, pre-merger P/E ratios, post-merger share price, and post-merger equity ownership distribution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    105 views1 page

    Mini Case On Mergers and Acquisitions

    Uploaded by

    Digvijay Diggi
    The acquiring company is considering acquiring the target company through a stock-for-stock transaction where the target company shareholders would receive Rs. 85 per share of their common stock. Using the provided financial information for both companies and assuming no earnings growth or synergies from the merger, the summary calculates: the purchase price premium, exchange ratio, number of new shares issued, post-merger EPS, pre-merger EPS for each company, pre-merger P/E ratios, post-merger share price, and post-merger equity ownership distribution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    MINI CASE ON MERGERS AND ACQUISITIONS

    Acquiring company is considering the acquisition of Target Company in a stock-for stock transaction in which Target Company would receive Rs. 85 for each share of its common stock. The Acquiring Company does not expect any change in its price/earnings ratio multiple after the merger and chooses to value the Target Company conservatively by assuming no earnings growth due to synergy. Calculate: a. b. c. d. e. f. g. h. The purchase price premium. The exchange ratio. The number of new shares issued by the acquiring company. Post-merger EPS of the combined firms. Pre-merger EPS of the acquiring company. Pre-merger P/E ratio. Post-merger share price. Post-merger equity ownership distribution. The following additional information is available.

    Particulars
    Earnings Number of shares Market Price per share Also comment on your results.

    Acquiring Firm
    Rs. 2,50,000 1,10,000 Rs. 52

    Target Firm
    Rs. 72,500 20,000 Rs. 64

    You might also like