A company has made an application for new Ordinary Shares. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares. Also the company issues Ordinary Shares in respect of the satisfaction of the initial tranche of deferred consideration for an acquisition to vendors at a strike price of 12.5 per Ordinary Share.
My understanding is that the above mentioned sellers bought the new issued shares at the price of 12.5. However the market price at the time was 8.37. Could you please explain what happened here as it is not likely that one will buy shares at a much higher price than one can buy on market.