When a merger or amalgamation is announced, your existing shares in the target or merging company will eventually be replaced, either by shares of the new or surviving entity, or by cash, depending on the deal structure.
What changes
- Your original shares are cancelled once the merger is approved and effective
- You receive shares of the merged entity in the swap ratio announced
- The original company’s stock gets delisted from the exchange
What stays the same
- The overall value of your holding should be roughly equivalent at the time of the swap and the swap ratio is set based on the valuation of both companies
- Your DEMAT account is updated automatically no action needed in most cases
Easy & quick
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