MUMBAI: When it comes to mergers and acquisition (M&A) transactions using share swap, there can always be a slip between the cup and the lip.
For instance, a deal can be struck assuming the acquirer’s shares will trade at a certain value. However, it will be only many months later, when the deal concludes, that investors will discover whether that assumption still holds.
In December 2018, when Hindustan Unilever Ltd (HUL) announced the acquisition of GlaxoSmithKline Consumer Healthcare Ltd (GSK Consumer), the former’s shares were roughly at ₹1,717.
But it was in May 2020 that GSK Consumer’s parent company disposed off the HUL shares it received as compensation. The good news for them is that the share sale was concluded at ₹1,905 per