JJA SA launched an offer on Pacemaker Ltd on 1/1/22, offering Pacemakers shareholders a 60%/40% (share/cash) mixed
Question:
JJA SA launched an offer on Pacemaker Ltd on 1/1/22, offering Pacemakers shareholders a 60%/40%\ (share/cash) mixed offer with a 35% premium over Pacemaker current share price. Given all of Pacemakers\ debt has a change of control clause, Pacemakers net financial debt will need to be repaid straight away. JJA\ cannot use the cash on its balance sheet to finance the acquisition.\ Q1: What is the value paid by JJA for Pacemakers equity?\ Q2A: What is the offer per share made by JJA to Pacemaker shareholders?\ Q2B: cash per share \ Q2C: exchange ratio i.e Number of JJA share for 1 Pacemaker share (3 decimals)Pacemaker stock options plans:
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta