Market value Mango Ltd is on the final stages of take over of Mulberry Ltd. Shareholder’s of Mulberry Ltd will likely to receive 0.75 shares of Mango Ltd for each of the share held. On detailed analysis there is no operating synergy or economies of scale in the merger and the merger is on pure competition avoid basis. Mango Ltd: Net Sales:837.5 (Millions) PAT:168 (Millions) Number of shares: 12,000,000 EPS:14 per share:75 P/E:5.36 Mulberry Ltd: Net Sales:295 (Millions) PAT:30 (Millions) Number of shares: 4,000,000 EPS:7.5 Market value per share:60 P/E: 8 Required: For the combined company (after merger), Calculate the; (i) Total Number of Shares, (ii) EPS, (iii) P/E ratio
Market value Mango Ltd is on the final stages of take over of Mulberry Ltd. Shareholder’s of Mulberry Ltd will likely to receive 0.75 shares of Mango Ltd for each of the share held. On detailed analysis there is no operating synergy or economies of scale in the merger and the merger is on pure competition avoid basis.
Mango Ltd:
Net Sales:837.5 (Millions)
PAT:168 (Millions)
Number of shares: 12,000,000
EPS:14
per share:75
P/E:5.36
Mulberry Ltd:
Net Sales:295 (Millions)
PAT:30 (Millions)
Number of shares: 4,000,000
EPS:7.5
Market value per share:60
P/E: 8
Required:
For the combined company (after merger), Calculate the;
(i) Total Number of Shares,
(ii) EPS,
(iii) P/E ratio
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