ABC Bearings hits another new high

about 7 years ago

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.