A Smaller Apollo Tyres of India to buy out a Bigger Cooper of USA ~ Foolish or Fantastic !? Market thinks it’s Foolish as it dropped Apollo down over 25% !
The Deal Size announced is US $ 2.5 Billion ~ Apollo Tyres Share Price took a massive beating on Thursday losing over one fourth of it’s Market Cap by closing over 25% down at Rs 68.60 ( Rs 1 FV) from Previous Day Closing of Rs 92 on BSE with Trading Volumes at over 8 million shares and over ten times the Two week Average before considering this Thursday abnormal Volume
Market Cap is down to Rs 3457 Crs or @ US % 591 m at Exchange Rate of Rs 58.41 to the US $
So an interesting perspective is that Apollo Tyres with a Market Cap of under US $ 600 m is taking over Cooper at US $ 2.5 Billion ~ that’s nearly five times Market Cap
Foolish or Fantastic !?
So is Apollo Tyres a Buying Opportunity at @ Rs 69 !?