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Striking a share swap ratio can be a delicate balancing act

Published Tue, Feb 13, 2018 · 09:50 PM
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IT IS tricky for an acquirer to come up with the "right" swap ratio for a merger with a target firm that would appease shareholders on both sides.

More so in a volatile market.

Viva Industrial Trust (VIT), being a target for merger with the Warburg Pincus-backed ESR-Reit, has seen its unit price fall 9 per cent from the start of February to S$0.86 on Tuesday, pummelled in part by the correction on Wall Street.

While this has narrowed its premium over its end-2017 book value of S$0.7651, which makes it easier for acquirer and target to me…

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