Hi everyone,
I didn't touch Math for almost 25 years.
today I try my best to find out the way to solve ACB+CMED share+cash puzzle.
after reading "improved offer" hundred times.
I found this way,
if there is anything wrong, please correct me.
----------------------------------------------------------
based on the date "improved offer"
acb = $12.65
cmed = $43
max cash cap $140M
if 100% chose cash option (which is 24.56 M shares)
then 1cmed share will recieve cash = $140M devide by 24.56M shares
= $5.7
the remain will be in X*ACB shares which will bring max value of $43 in cash per cmed
we have
$43= X*12.65 + $5.7
X=($43-5.7)/12.65
X=2.948
since ACB & cmed are variables
so if 100% chose cash option
we have
cmed = 2.94*acb + $5.7
=====
Now we will go further
in case if only Y% of cmed shares chose cash option
then 1cmed share will recieve ($140M devide by Y% cmed shares) cash + X*acb shares
here we are:
(a) $43 = X*12.65 + $140M/Y% of cmed shares.
because acb and cmed are variables so we also have
(b) cmed = X*acb + $140M/Y% of cmed shares
*****Let's go check it out whether above equations is correct or not*****
*assume Y=25% cmed shares chose cash option
= (24.56M*25)/100
= 6.14M shares.
from (a)
$43 =X*12.65 + $140M/6.14M
$43 = X*12.65 + 22.80
x=1.59
so if only 25% chose cash option
then from (b) we have
cmed=1.59*ACB + $22.80
*assume Y=30% cmed shares chose cash option
= 24.56M*30/100
= 7.368 M shares.
from (a)
$43=X*12.56 + $140M/7.368M
$43=x*12.56 + $19
X= ($43-$19)/12.65
X= 1.89
so if only 30% chose cash option
then from (b) we have
cmed = 1.89*acb + $19
*assume 75% cmed shares chose cash option
which is = (24.56 M * 75)/100
= 18.42M shares
from (a)
$43 = X*12.65 + $140M/18.42M
=X*12.65 + $7.6
X = ($43-$7.6)/12.65
=2.79
so if only 30% chose cash option
then from (b)
cmed =2.79*ACB + $7.6
if we know exactly number of shares chosing cash option
then we can calluate CASH VALUE of cash option + ACB shares per cmed share.