Q4 (a) Blue Ocean Bhd (OCB), a seaport operator is planning to acquire Fast Mover Bhd...

 

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Q4 (a) Blue Ocean Bhd (OCB), a seaport operator is planning to acquire Fast Mover Bhd (FMB), an haulage transport operator. The acquisition aims to intergrate and expand supply chain business of the group. The offer price to acquire the entire shares of FMB is RM 11.00 per share. The due dilligent process has concluded the following bidding summary of pre-acquisition financial data for both OCB and FMB as dipicted in Table Q4 (a). (b) Table Q4(a): Summary Financial data of pre-acquisition financial data Acquirer Company (OCB) RM 250 mil 10 million RM16.00 Target company (FMB) Revenue (RM) No of share (unit) Average share price/unit Post-acquisition synergy: • Revenue increase RM 6 million yearly until year 3rd. • Cost saving RM 3 million yearly until year 3rd. RM60 mil 3 million RM8.00 Analyse the propose acquisition whether it would benefit both shares holders of the companies by showing the evidence of created synergy and value of the post - acquisition. (10 marks) Point out THREE (3) key success factors for merger and acquisition. Q4 (a) Blue Ocean Bhd (OCB), a seaport operator is planning to acquire Fast Mover Bhd (FMB), an haulage transport operator. The acquisition aims to intergrate and expand supply chain business of the group. The offer price to acquire the entire shares of FMB is RM 11.00 per share. The due dilligent process has concluded the following bidding summary of pre-acquisition financial data for both OCB and FMB as dipicted in Table Q4 (a). (b) Table Q4(a): Summary Financial data of pre-acquisition financial data Acquirer Company (OCB) RM 250 mil 10 million RM16.00 Target company (FMB) Revenue (RM) No of share (unit) Average share price/unit Post-acquisition synergy: • Revenue increase RM 6 million yearly until year 3rd. • Cost saving RM 3 million yearly until year 3rd. RM60 mil 3 million RM8.00 Analyse the propose acquisition whether it would benefit both shares holders of the companies by showing the evidence of created synergy and value of the post - acquisition. (10 marks) Point out THREE (3) key success factors for merger and acquisition.

Answer rating: 100% (QA)

aThe proposed acquisition would benefit both shareholders of the companies by creating synergy ... View the full answer