SFR 1.08% $9.40 sandfire resources limited

Don’t quite follow you there, but would like to understand. If a...

  1. Kep
    143 Posts.
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    Don’t quite follow you there, but would like to understand. If a company is worth $100 and has two shares on issue they are each worth $50. If it then decides to buy another company worth $100 (or mine or whatever) it raises the money by selling another two shares at $50. So now there are four shares, but the company is worth $200, so each share value hasn’t been diluted. Where am I going wrong?
 
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