Examples of Initial Acquisition Agreement in a sentence
Further details regarding the Initial Acquisition Agreement is set out in the joint announcement on the Stock Exchange issued by Century City, Paliburg and Regal dated 20 August 2013.
As a first step in the process of determining the original Chain Principle Offer price, the Executive approached Disney and Fox to establish whether any value had been attributed to the stake in Sky during negotiations for the Initial Acquisition Agreement.
Further details regarding the Initial Acquisition Agreement are set out in the joint announcement on the Stock Exchange issued by Century City, Paliburg and Regal dated 20 August 2013.
By increasing the initial Chain Principle Offer price by a percentage equal to that by which the consideration payable under the Initial Acquisition Agreement increased under the Revised Acquisition Agreement, one proceeds on the assumption that the value of the stake in Sky (as perceived by Disney) increased precisely in line with the value of Fox’s other assets.
As noted previously, the Committee believes that the price attributed by Disney to acquiring Fox’s 39% stake in Sky under the Revised Acquisition Agreement, will have been driven by two principal factors, namely, the trading performance of Sky during the period since the Initial Acquisition Agreement and the strategic value to be attached to the 39% stake in circumstances where Disney was intent upon securing effective control of Sky in the face of a competing bid from Comcast.
Whereas under the Initial Acquisition Agreement the Executive had evidence of a published attribution of value which was agreed by both parties to the transaction and which remained valid when compared to the valuation material prepared by or on behalf of Disney, on the second occasion there was no such starting point.
The $28.00 valuation for each ordinary share in Fox under the Initial Acquisition Agreement was apparently derived from a volume weighted average price of Disney’s shares over the 30 days preceding the date on which the share exchange ratio under the Initial Acquisition Agreement was agreed.
The increase in enterprise value is said to convert into an equity value for Sky of £26.2 billion under the Revised Acquisition Agreement, as compared to the corresponding equity value of £18.8 billion implied by the Initial Acquisition Agreement.
The Committee was told by Mr Warbrooke, the Disney employee who led Disney’s internal valuation work both for the Fox assets overall and the stake in Sky specifically, that prior to the Initial Acquisition Agreement and the Revised Acquisition Agreement, Disney had prepared DCF projections which valued the 39% stake in Sky at about £8.80 and £11.80 per share respectively.
There was no reason to believe that by increasing the initial Chain Principle Offer price by a percentage equal to that by which the consideration payable under the Initial Acquisition Agreement increased under the Revised Acquisition Agreement, the value of the stake in Sky (as perceived by Disney) increased precisely in line with the value of Fox’s other assets.