Sucre Ltd has recently bid GHS 1.2bn for a Sel Ltd, a long established mutual...
50.1K
Verified Solution
Link Copied!
Question
Finance
Sucre Ltd has recently bid GHS 1.2bn for a Sel Ltd, a long established mutual organization (that is owned by its members) that is the countrys leading motoring organization with a market value of 1 billion cedis in present value terms. Sel Ltd is financed primarily by an annual subscription to its 4.4 million members whilst it also obtains income from a range of other activities such as high profile car insurance brokerage, travel agency and assistance with all types of travel arrangements. If this acquisition goes through the combined value of the firm would be 9.2 billion cedis
What defenses are available to shareholders against the takeover of their companies?
Discussion the possible reasons why Sucre Ltd is seeking to buy Sel Ltd
Discuss the potential advantages from acquisitions of this nature
Supposing the acquisition were successful determine the Net Present Value of the Transaction, the cost to the parent company, the gain from the acquisition and how the gain would be shared stating clearly your assumptions
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
