On the basis of the ratio of the assessed relative values of the two entities being merged. With all scrip consideration the traded price today is not so relevant. The announcement notes that GTC shareholders will own 39% of the merged group.
If the market is discounting the value of AFL then arguably the market value of GTC is also reduced. With over 90% of the scrip issued to GTC shareholders being locked up in Escrow for 12 months, provided GTC shareholders can see the delivery of synergy benefits and a market rerating then todays share price is less relevant.
The ASX is stipulated the need for an independent expert to conclude the deal is in the interests of AFL shareholders, so this should provide additional comfort that the deal is worthwhile from existing AFL shareholders perspective.
News: AFL Af Legal Executes Share Sale Deed To Buy GTC Legal Group, page-6
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Last
14.0¢ |
Change
0.010(7.69%) |
Mkt cap ! $12.78M | |||
| Open | High | Low | Value | Volume |
| 13.5¢ | 14.0¢ | 13.5¢ | $27.39K | 195.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 12940 | 12.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 14.0¢ | 1930 | 1 |
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| Last trade - 13.56pm 15/08/2024 (20 minute delay) ? |
| AFL (ASX) Chart |