In summary, it's a merger of the two companies, and the shares will continue to be traded on the stock exchange.
We don't allow speculation about share prices, but this is unlikely to be a negative for Dalata, unless the analysts feel that they are paying too much for Morans.
It is usually used when there is a very large private company which wants a stock market quotation. They reverse takeover a small quoted company and use their quote It saves all the hassle and cost of applying for a listing. It is also used to circumvent regulations. For example, IIRC, after Irish Permanent Building Society went public, there was a 5 year period in which it could not be taken over. Irish Life wanted to buy it. So permanent tsb bought Irish Life instead rather than wait 5 years.
Dalata is a quoted company worth about €350m based on the last share price.
Moran Hotel Group is a private company which Dalata appears to have agreed to buy for €450m, so it's a larger company.
In a normal takeover, Dalata would pay cash for the shares in Moran Hotel Group.
In a reverse takeover, Moran Hotel Group takes over Dalata , but then merges with it.
The shares will continue to be quoted.
Brendan
