Calculate the total number of shares

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Reference no: EM132650644

QUESTION ONE Study the article below and answer the questions that follow:

Case - Drug firm Adcock stays in SA hands

Required:

Calculate the total number of shares to be acquired by CFR based on Adcock's market value of R70 per share.

Assume CFR shares are currently trading at $65.60 per share. Determine the exchange ratio based on market values for the proposed acquisition. (Assume $1 = R10.67)

Recently Bidvest Holdings raised its stake to 34.5% in Adcock. Calculate the number of shares held by Bidvest Holdings in Adcock.

In light of the above article, discuss the potential gains for the offeror from the proposed acquisition.

Attachment:- Drug firm Adcock stays in SA hands.rar

Reference no: EM132650644

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