The 16/19 ratio1 Feb 2019 09:30
The reason for the 16/19 ratio is based on the difference in the number of shares in issue for the two companies as stated in the RNS …the exchange ratio of 16 new Taptica shares for each 19 RhythmOne shares set out above is based on 68,521,997 Taptica shares in issue and a fully diluted share capital of RhythmOne of 80,947,880, in each case as of 29 January 2019, being the last practicable date before release of this Announcement.
i.e. 16/19 = 0.84 and 68521997/80947880 = 0.84
Short of a very positive 3Q trading update and year end guidance from R1 can anyone see a good reason why TAP should pay a premium for R1 over and above this 16/19 ratio??