Hi how can I calculate the percentage tookover when ABC Ltd acquire XYZ Ltd? What is the non-controlling interest be?
ABC Ltd made a takeover bid for all the issued voting shares of XYZ Ltd offering three ABC Ltd shares for every two XYZ Ltd shares. The offer from ABC Ltd was accepted by 90% of the shareholders of XYZ Ltd. The date control was obtained by ABC Ltd was deemed to be 1 January 20X7. The following information is available.
(a) Shareholders’ equity of XYZ Ltd at balance date on 31 December 20X6:
Share capital (200,000) shares 200
General reserve 300
Retained earnings 150
(b) Market value of each entity’s shares at 1 January 20X7
ABC Ltd $3.20
XYZ Ltd $4.00