Publication detail

Fair value in squeeze-out of large mining companies

BARTOŠ, V. VOCHOZKA, M. JANÍKOVÁ, J.

Original Title

Fair value in squeeze-out of large mining companies

Type

journal article in Web of Science

Language

English

Original Abstract

The objective of the paper was to evaluate and propose a method for the valuation of the purchase of minority interest in the squeeze-out of large mining companies in the Czech Republic. The research was conducted on a case of a specific company. An analysis of the relevant industry, potential, and financial analysis were performed. Based on these analyses, the method of DCF Equity (Discounted Cash Flow) was selected as a suitable method that can best capture and consider the specifics of the company assessed since, within this method, cash flows are discounted to the owners. The resulting fair value of the transaction reflects the stock market value to determine adequate cash settlement in squeeze-out. It sufficiently compensates the damage caused to the minority shareholder while accepting the price by the majority shareholder, who is willing to pay up to the amount corresponding to the benefits the transaction brings to them. In accordance with the IVS, the selected method is suitable for squeeze-out transactions, where legislators have the information on the values of the majority shareholder´s benefit and knows the value the minority shareholder is willing to accept in squeeze-out.

Keywords

Squeeze-out, fair value, market value, mining companies, stocks, shareholder, DCF Equity

Authors

BARTOŠ, V.; VOCHOZKA, M.; JANÍKOVÁ, J.

Released

31. 12. 2021

Publisher

Technical University of Kosice

ISBN

1335-1788

Periodical

Acta Montanistica Slovaca

Year of study

26

Number

4

State

Slovak Republic

Pages from

712

Pages to

731

Pages count

20

URL

https://actamont.tuke.sk/pdf/2021/n4/10bartos.pdf

Full text in the Digital Library

http://hdl.handle.net/11012/203984

BibTex

@article{BUT176807,
  author="Vojtěch {Bartoš} and Marek {Vochozka} and Jan {Janíková}",
  title="Fair value in squeeze-out of large mining companies",
  journal="Acta Montanistica Slovaca",
  year="2021",
  volume="26",
  number="4",
  pages="712--731",
  doi="10.46544/AMS.v26i4.10",
  issn="1335-1788",
  url="https://actamont.tuke.sk/pdf/2021/n4/10bartos.pdf"
}