18-03-2014, 05:59 PM
(17-03-2014, 04:20 PM)opmi Wrote: Hypothetical Question: If CapitaMall Asia (CMA) or ARA did an offer for PCRT using CMA shares but no cash, will PCRT minorities be happy?
For Publicly-Traded-Companies like PCRT, CMA and ARA,
MV = Market Value = Market Cap = Share Price x Number of Shares issued.
If CMA offers to take over PCRT with share swaps:
MV (CMA + PCRT) = MV (CMA) + MV (PCRT), assuming there is no net value creation or destruction from the merger. This is a simplest, reliable and powerful value measure - one could immediately work out the fair ratio of shares to be swapped.
As in the case of PREHL offers, such value measure could not be carried out, as market determined MV (PREHL- 1) does not exist.
(Note: PREHL-1 = PREHL with 27.93% of PCRT.)
All things being equal, I’d rather the “offeror” is a listed entity.
(not vested)
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.