ABC Bearings hits another new high

ABC Bearings has been hitting new highs for the past couple of days. Today too, the moment it opened for trading, it shot up 20% to breach the UC and hit a new high at Rs.285.70.

The shareholders of ABC Bearings are very happy as the merger with Timken India is working out in their favour. The merger has approved a valuation of ABC shares at a premium to current market price.

Shareholders of ABC will get five shares of Timken for eight shares held. 5 shares of Timken, at the current market price of Rs.732 comes at Rs.3660 while 8 shares of ABC at current price of Rs.285.70 is worth Rs.3086 – so shareholders of ABC are getting shares valued at over 19% premium to current market price.