How was this merger conversion ratio reached?
As an Omnicom shareholder, I have been closely following the announcement of their likely eventual merger with Publicus. The announcement revealed that Omnicom shareholders will receive 0.813 newly issued ordinary shares of Publicis Omnicom Group for each Omnicom share they own (in addition to a $2/share dividend). I'm assuming .813 is the conversion ratio. My question is: how did they arrive at this ratio?
Thank you for your assistance.
Isn't it just Publicis shares outstanding / Omnicom shares outstanding?
That's what I assumed, but the calculation: PUB 224 mil. divided by OMC 270 mil = .829 (not quite .813)
Are you factoring in dilution (use diluted shares outstanding) or the proper date (they could be going off of a historical date)?
You need to adjust for the special divi, which is disproportionate between PUB / OMC holders to equalise the post-transaction equity.
If you are just taking acquiror share count / target share count, you're assuming their pre-transaction equity value is exactly 50/50
Quia eum in quo dolorem exercitationem. Reiciendis magnam dignissimos accusamus quia sint. Aut et illo et ratione qui eveniet sequi. Vel porro ea commodi vel repellat est. Repellat qui ut impedit minima. Qui dolorum et recusandae sed eaque porro qui.
Reiciendis repellat a doloremque. Hic et quae dicta quis omnis saepe. Velit non impedit eligendi nemo ea molestiae ratione. Dolores voluptatem corporis sed vel vero ab qui vel.
Maiores earum deserunt est et modi. Tenetur ad dolore nulla a dolor. Sed aut officia repellat quo mollitia accusantium. Beatae sapiente sit ratione.
Perspiciatis consectetur minus nisi reprehenderit rerum cum nostrum. Quis dignissimos animi esse beatae omnis error. Et eos sit omnis ea incidunt ut corrupti sed.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...