Duel listed company valuation

Snowdrop08

Hi, first new thread posting!

Can anyone inform me how a company listed on say,the South African Stock Exchange and AIM would be valued on a takeover bid?

AnotherJoe

It depends who wants to buy them,why, the financial position of both parties and market conditions at the time.
Or in short, no

Linton

there are two different valuations. The market valuation would be the total value of all the shares, wherever they are listed. Any potential buyer would presumably be more interested in the value of the tangible and intangible assets owned by the company and the net financial benefit of creating a merged business.

I do not see having a dual listing makes much difference.

bowlhead99

Linton wrote: »

.

I do not see having a dual listing makes much difference.

The dual listing just opens up the shares to a wider audience of public investors and so more people may be interested in the shares, which is generally positive for the price and can lower the cost of capital or cost of debt- alhough can add some operating cost to the business for compliance and admin.

However, if they are to be taken over, the group that takes them over will own then and they won't be listed at all, so whether they are currently (or used to be) listed on one or two or three markets is neither here nor there in terms of what you would want to pay to acquire them as a buyer.

As a shareholder in the company, if the company is sold you'll get the same compensation for your shares whether you bought them on the Jo'burg or London stock exchange.

Snowdrop08

Many thanks for the replies. There’s always something new to learn about finance and investing! I appreciate you sharing your knowledge.