Merger and Acquisition of Metro Retail Ltd.xlsx

	B	F	H	L	N	R
1
2	Merger Model
3	(INR in crores except per share figures)
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5	Module 3- Acquirer & Target Financial Profile
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7	Acquirer Financial Profile (Metro Retail Ltd)		Target Financial Profile (Freshkart Food Pvt Ltd)
8	Fully Diluted Shares	500	Fully Diluted Shares	100
9	Per Share Price	₹ 150.00	Per Share Price	₹ 80.00
10	Equity Value	₹ 75,000.00	Equity Value	₹ 8,000.00
11	Forcasted EPS	₹ 15.00	Forcasted EPS	₹ 6.00
12	P/E Mutiple	10.0x	P/E Mutiple	13.3x
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15	Module 4 - Offer Price and Permium Calculations
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17	Transaction Assumption
18	Offer Price Per Share	₹ 100.00
19	% of Permium	25%
20	Offer Value	₹ 10,000.00
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22	Module 5 - Cash vs Stock Consideration
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24	Deal Structure (Form of Cosideration)
25	% Stock	50%
26	% Cash	50%
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28	Cash Consideration (All Debt Funded)		Stock Consideration		Deal Assumption
29	Offer Value	₹ 10,000.00	Offer Value	₹ 10,000.00	Synergies, net	800
30	% Cash	50%	% Stock	50%	Transaction Fees % offer value	2.50%
31	Total Debt Financing	₹ 5,000.00	Total Stock Consideration	₹ 5,000.00	Transaction Fees	₹ 250.00
32	Financing Fees	₹ 100.00	Acquirer's Current Share Price	₹ 150.00
33	% of Financing Fees Of total Debt	2.0%	Number of shares to be issued	33.33333333
34	Borrowing Term	5 Years
35	Financing Fees Amortization	₹ 20.00
36	Interest Rate %	8.0%
37	Annual Interest Expneses	₹ 400.00
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39	Module 6 - Purchase Price Accounting (PPA)
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41	Purchase Price Accounting		Assets Write ups
42	Offer Value	₹ 10,000.00	% Allocation of PP&E	20%
43	Less:-Net Tangible Assets	₹ -5,000.00	Useful Life assumed	20 Years
44	Purchase Premium	₹ 5,000.00	Incremental Deprecaition	₹ 50.00
45	Less:- Allocation to PP&E	₹ -1,000.00	Tax Rate	25%
46	Less:- Allocation to Intangible	₹ -500.00	% Allocation to Intangible	10%
47	Add:- Deferred Tax Liability	₹ 375.00	Useful Life assumed	20 Years
48	Goodwill Created	₹ 3,875.00	Incremental Amortization	₹ 25.00
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50	Module 7- Accretion & Dilution Analysis
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52	Accretion & Dilution Analysis
53	Acquirer Net Income	₹ 7,500.00	Target Net Income	₹ 600.00
54	Tax Rate %	25%	Tax Rate %	25%
55	Acquirer EBT	₹ 10,000.00	Acquirer EBT	₹ 800.00
56
57	Pro-Forma Financials		Pro-Forma EPS
58	Consolidated EBT	₹ 10,800.00	Pro-Froma Net Income	₹ 8,141
59	Less:-Interest Exp and Financing fees	₹ -420.00
60	Less:-Transaction Fees	₹ -250.00	Pre-Deal Acquirer Shares Outstanding	500
61	Add:-Synergies	800	Add:- New Issued Shares	33
62	Less:-Incremental Dep & Amt	₹ -75.00	Total Shares Outstanding	533
63	Pro-Forma EBT	₹ 10,855.00
64	Tax Rate %	-2714	Pro-Forma EPS	₹ 15.26
65	Pro-Forma Net Income	₹ 8,141	% Accretion/(Dilution)	1.77%
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