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 company has increased the Exchange Ratio of its exchangeable shares from 1.04906 to 1.05389.
Given the exchange ratio Eltek and Nera shareholders will hold some 60% and 40% of the combined company, respectively.
In a weak-dollar environment, the use of stock to acquire a foreign business is an attractive alternative to cash, particularly when the exchange ratio of the stock to be delivered reflects a discount for the current blip in relative exchange rates.
The final stock exchange ratio for the planned merger between the two banking groups in October will be announced by the end of February, possibly in the week beginning Feb.
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.
"On the basis of the exchange ratio, BPI shareholders will own two-thirds of the combined bank, and FEBTC shareholders, one-third," it said.
Proponents of maximum aircraft technology further note that stupendous exchange ratios have been recorded by Israeli pilots using modem U.S.
The two sides are still negotiating the exchange ratio of the potential all-stock merger, which could delay the announcement, the authors note.
As a result of the merger, Enbridge would acquire all of the 81.9m public outstanding common units of SEP at a fixed exchange ratio of 1.111 common shares of Enbridge for each common unit of SEP.
Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, L3 shareholders will receive a fixed exchange ratio of 1.30 shares of Harris common stock for each share of L3 common stock, consistent with the 60-trading day average exchange ratio of the two companies.
Based on the closing price of the GBL Class A common stock on the NYSE on January 31, 2018 of $29.48, the exchange ratio represents a 12.9% discount to the closing share price of the GBL Class A common stock.
This exchange ratio is fixed and will not be adjusted to reflect share price changes of the AC Class A common stock or GBL Class A common stock prior to the closing of the exchange offer.