This is another somewhat special situation, so I thought I’d briefly explain the current pricing dynamics of EAB’s stock. The exchange ratio for the share arrangement is locked such that one EAB share yields 0.172725 new Evli shares. Conversely, this means that to get one Evli share, an investor must buy 5.79 EAB shares. Decimals in the number of shares are not a problem here, as an investor can buy a minimum of 100 shares, or alternatively, according to the terms of the arrangement, partial shares are adjusted with cash consideration. Thus, the acquisition price for one Evli share at the current EAB share price would be 5.79 * 3.05 = 17.66 euros. In this example, the investor receives additional dividends totaling 0.99 euros and cash consideration of 1.26 euros for the acquired EAB shares, both of which “finance” the purchase and thus lower the acquisition price. This leads to the 15.4 euro price for an Evli share through EAB.
The additional dividends and cash consideration are not dependent on EAB’s share price development, but the aforementioned acquisition price for Evli’s shares (17.66 euros) fluctuates with EAB’s share price; the lower the share price, the cheaper the investor gets Evli ownership through EAB’s shares. However, this calculation does not take into account Evli’s market price, so theoretically, it is possible that at some point, Evli could be bought directly from the stock exchange for less. Although the current discount in pricing favors EAB, the situation would be different if, for example, EAB’s share price remained stagnant and Evli’s share price fell below 15.4 euros. In such a case, the investor should naturally buy Evli shares directly. It is advisable to be careful in trading if one intends to utilize changes in Evli’s and EAB’s share prices in the coming months.