mode of payment/consideration

how much consideratio to be paid? floor price -SEBI

No. of bidders
control over scare resource

Offer Value/equity value Total no. of shares o/s of TC*puchase price/share

Transaction value/Enterprise value (EV) =offer value+debt+pref stock+minority

how to be paid?
SHs of TC
SHs of AC

debt equity
Equity
shares cash reserves

TC firm value=

equity value=

payment in cash (all cash deal) cash consideration /share=equity value of target company/ no. of shares o/s
shares o/s 98.8
dilution impact of shares 4.54
equity value 8060

curret share price?share 50

Bv of convertible debt 2000
conversion price/share 40
Increse in no. of shares 50
existing share/os 3000shares
add dilution impact 3050
cash consideration /share?

payment in prefrred stck

payment in common stock (fully in shares-all share deal)
swap ratio or excahgne ratio =value /shareof TC/Value/shre of AC
=Equity value of TC/target shares o/s o

Ac compq 27.07/sharawap ratio= 1.49944588104913

ATC digital 40.59/share
 0.907052 .9 share of compaq for evry 1 share of

payment in debt
combination d stck, cash & debt
 Ceiling price-TC Intrinsic Vaue (value of synergy + valure of control+status quo value)

er scare resource

price/share
ue+debt+pref stock+minority Intrest-cash & cash equivalents

46%

price to be more towards ceiling

floor price

status quo value+value of control+value of synergy

firm value+cash-debt

not just basic shares

company/ no. of shares o/s target company

basic EPS diluted

equity call options ITM OTM
convertible debt/bonds in the money/ITM

ITM
50 additional shares

77.99497 77.99$/share

areof TC/Value/shre of AC
lue of TC/target shares o/s on date of announcement*acquirers's share price 1 day prior to agreement

=1.5 shares of compaq for evry I share of digital

f compaq for evry 1 share of digital.