Cuz NEC is acquiring 51.1 % of FXJ. It’s the ownership aspect...

Cuz NEC is acquiring 51.1 % of FXJ. It’s the ownership aspect matters here. Whatever FXJ earns, 48.9% stays and the rest goes into NEC account. And this deal favours FXJ shareholders as well. Why ?

Like I said 48.9 % of the future earning stays, and the rest will go under the NEC shares offered in the merger. As a fxj shareholder, you basically still get the whole pie in the name of two different companies. And becuz you receive NEC shares , you also get exposed to caradvice and those brand under NEC as sprinkles and cream.

Like a mention, the loser here is the current NEC shareholders,UNLESS there is a really big synergy effects boosting the future income to balance out the dilution.

Again I’m only looking at this using the ownership aspect. I don’t predict how the businesses will go.
Good luck investing