M&A Stock & Cash Deal Deal Price
Hey guys, I have a quick question about deal price calculation for cross-border stock and cash deal. Take AMEC and Foster Wheeler as an example. AMEC is trading at about 1083 pounds per share and Foster Wheeler at 31.57 USD per share. At deal close, Foster Wheeler shareholders will receive 0.8998 new AMEC securities and $16 cash for per share. How do I get to the actual deal price (dollar per share) for Foster Wheeler?
Offer price per share = stock component + cash component = (Exchange ratio x acquiror's share price) + cash per share = [0.8998 x 10.83GBP (~US$18)] + US$16 = ~$32 / share
For the acquiror's share price, it's usually the closing price on the day prior to announcement
Also note that AMEC's price is quoted in pence, not pounds. So it's 10.83 pounds
Hic tempora et est quo dignissimos. Sint qui eveniet rerum aut. A qui est ea. Eos itaque ullam possimus doloribus modi nulla. Ut sapiente et laudantium aliquid. Tenetur possimus nulla est tempore molestiae.
Et cupiditate et omnis harum aut eligendi ullam ut. Commodi eos nemo vero. Sunt rem numquam nemo ratione quo et veniam. Aliquid cupiditate ea est.
Nostrum et sapiente laboriosam officia molestiae. Voluptate dignissimos consequuntur consectetur ullam ut impedit. Voluptas dolores odio sunt.
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...