BuyCo is purchasing SellCo, and paying in shares. BuyCo has a share price of $45, with 17

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BuyCo is purchasing SellCo, and paying in shares. BuyCo has a share price of $45, with 17 million shares outstanding. SellCo has a share price of $16, with 13 million shares outstanding. If the merger will create synergies with an NPV of $31 million dollars, and SellCo will not sell unless they get 0.6 of the synergies, how many shares in the merged form should BuyCo offer SellCo's equity holders in payment?

Posted Date: May 18, 2024 05:13 PM

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BuyCo is purchasing SellCo, and paying in shares. BuyCo has a share price of $45, with 17

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