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Delta Limited plans to acquire Gamma Limited. Delta Limited plans to propose a cash offer by paying the market price of Gamma shares as well
Delta Limited plans to acquire Gamma Limited. Delta Limited plans to propose a cash offer by paying the market price of Gamma shares as well as paying of synergy created in the market value of assets. This deal expects to generate synergy of additional $ of market value of assets and $ of net income. Assume there is no transaction cost, financial and operating risk remain constant.
Share price is $ and $ of Delta Limited and Gamma Limited respectively.
Shares outstanding are and of Delta Limited and Gamma Limited respectively.
Market value of assets are $ and $ of Delta Limited and Gamma Limited respectively.
Net Income is $ and $ of Delta Limited and Gamma Limited respectively.
Calculated market value of assets of Delta Limited after acquisition.
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