Question
Consider the following financial information for a bidder and a target. A$ million Bidder Co Target Co Stand alone EV 600 150 Net Debt (50)
Consider the following financial information for a bidder and a target.
A$ million
Bidder Co
Target Co
Stand alone EV
600
150
Net Debt
(50)
(50)
Shares on Issue (millions)
110
50 Following extensive financial modelling, the combination DCF equity value of the two companies is found to be $675 million. Based on this information, and ignoring transaction costs, what is the maximum reservation exchange ratio (RER) for Bidder Co?
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Restoring Demand In The World Economy Trade Finance And Technology
Authors: Joseph Halevi, Jean-Marc Fontaine
1st Edition
1858984580, 9781858984582
