Exchange Ratio


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Exchange Ratio

The number of new shares in an acquiring firm that are given for each outstanding share of an acquired firm.

Exchange Ratio

In mergers and acquisitions, the number of shares an acquiring firm distributes for each validly rendered share of the acquired company. Each exchange ratio is calculated in accordance to the merger or acquisition agreement. Factors considered in determining the ratio are the relative value of each company prior to the closing of the merger or acquisition, any potential tax advantages for both parties, and applicable regulations.
References in periodicals archive ?
The increase in the Exchange Ratio is calculated by multiplying the Marathon dividend per share of common stock by the Opening Exchange Ratio and dividing by the five day weighted average trading price of MRO common stock on the date that is three business days prior to the Marathon dividend record date.
Also, if the implied per share consideration for each share of FNIS common stock falls below a floor of $19, FNF has the right to adjust the share exchange ratio to maintain an implied $19 per share consideration for each share of FNIS common stock.
All notices received after this date will receive the exchange ratio to be determined on March 15, 2010.
The exchange ratio will be determined by calculating the average closing price per share of AMRE common stock on the New York Stock Exchange for the 15 trading days prior to the day three days before AMRE requests acceleration of effectiveness of the Registration Statement containing the Joint Proxy Statement/Prospectus.
The actual exchange ratio will be calculated on the following basis: Exide Electronics ATP from $14.
The actual exchange ratio is tied to TCF's average closing stock price over the 20 trading days ending three business days before the later of the date of the last shareholders' meeting called to approve the merger, or the date the last regulatory approval has been obtained and all regulatory waiting periods have expired.
The exchange ratio would be adjusted if the average of the closing prices of FBS common stock is less than $33.
a) The exchange ratio is calculated by multiplying the Enterra Energy Trust distribution per unit by the opening exchange ratio and dividing by the ten-day weighted average US$ trading price of ENT prior to the Redemption Date.