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MERGERS AND ACQUITIONS FI 418 Assignment 20% ma !

!s "in#$%&ing '% #$ass (a ti#i(ati)n* 1+'00 ,) &s For this subject, you are required to download the published annual company reports from a large public Malaysia company or International company that had carried out mergers or acquisitions on other public company or companies previously. The company that you select must be different from your colleagues in your class. The published accounts of these acquiring companies are very rich in terms of information, Directors statements and tender offers documents etc can, and to some e tent, provide the rationales for the mergers and acquisitions, the synergies e pected from the deals, and the indicators of their thin!ing in terms of the future but they cannot give too much away because of the competition. "owever, your reading of the company and the statements that are available and additional research, will give you a good feel of the transactions, both prior and post M#$ and where it is now, what they had achieved and what was the shareholders% value prior to the M#$ and post M#$. This is the first step in getting to grips with this subject. To supplement your analysis and understanding of the M#$ strategies and strategic management and how shareholders and others including investment bro!ers and business analysts thin! about the enlarged company you should try to download the share prices of your selected company, pre& and post&merger. 'ou should try to obtain as long a period as possible and this can then give you some indication of the acquiring company changes in terms of enhancement of revenues, mar!et shares, cost reductions, trading conditions, competition and other variable factors that dictate the movement in shares and of course, the mar!et value of the shares. (i!ewise, you should also research and obtain information from other sources and it would be appropriate to obtain past news and assessments of your selected company, both prior and post mergers. )ithin the conte t of the study of Mergers and $cquisitions, we are concerned whether ma imi*ing shareholder value had been achieved or otherwise, merging or acquiring targets provided us with very positive net cash flows or not, determined how these targets were paid, and how were these financed and its future plans to enable achievement of its set objectives. This ma!es mergers and acquisition and its value to the merger strategy and post M#$ management of the business so important and challenging.

For the purpose of this assignment you are required to+ ,. Determine whether the acquiring company%s plans and statements by its Directors are justified in terms of its objectives and goals for the ta!eover, its capital structure, its pre& and post&merger cash flow positions and the synergies obtained. -. 'ou are required for this assignment to assess whether the purchase consideration paid on the targeted company was fair and reasonable mar!et value or otherwise, considered as e cessive premium. .. 'ou are to assess the M#$ had achieved its objectives and had created value for shareholders or otherwise. To do this, ,. Download their published statements of the company ta!en over and analy*e its financial positions prior to the acquisition as to its profitability and cash flows generations. -. Download the mar!et prices of the share of the acquired company for the ,- months prior to being ta!en over, .. Determine how the acquiring company derive at the consideration, its basis and how was the acquisition financed. purchase

/. To do this, you have to complete an analysis of capital structure of the acquired company, e amine current interest rates and comment whether acquisition was justifiable for that premium paid. 'ou need to use data on revenue and costs of the acquired company and then wor! out the relevant costs for underta!ing 012 analysis in terms of the ta!eover. )e e pect your analysis to consider all aspects of financial management theories and their application in your review. 1lease provide an e ecutive summary to your report. 'ou will be assessed on the quality of your analysis and your logical conclusions. T"343 I5 06 4I7"T 64 06 )4607 $05)345. 1rovide all necessary appendices, charts, etc.

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