What is the impact of mergers and spin offs on shares?
The effect of mergers and spin-offs on shares varies based on specific circumstances and the swap ratio. The swap ratio is the exchange rate of shares between companies involved in a merger, calculated by evaluating the assets and liabilities of the merging companies.
The swap ratio determines the level of control each group of shareholders will have over the merged company. It also indicates the relative value of the financial and strategic outcomes of the company.