Question 6 11 Marks

Buderim Group, Australia's oldest ginger processing and agritourism business has received an $8.3 million takeover offer from Global Foods. It was noted that The proposed deal includes the Buderim Ginger brands, all land, plant and ginger processing equipment at Yandina and the Ginger Factory tourist attraction, as well as a 1,619-hectare macadamia orchard in Hawaii.

During the takeover of Buderim Group, the Executive Director observed that We are in a unique position to invest the required capital and expertise to enable the ginger division to continue into the future, and for the company to profitably grow with a renewed focus on the macadamia industry. He also noted that they would rebrand to Health and Plant Protein Ltd.

Among the strategies he indicated was that they would transfer over with the ginger division and take on a non-executive director role with the macadamia arm of the business. He stated We've been working with ginger growers on the Sunshine Coast since 1941 and I don't see any change to that. Therefore, he said "Buderim Ginger and the Ginger Factory are part of the fabric of the Sunshine Coast, we are Australia's leading ginger company, and we'll continue exporting Australian ginger around the world.

Finally, the Executive Director said We are doing this to act in the best interests of the shareholders; certainly, we wouldn't be doing this if we didn't think it was for the right reasons," ABC News Posted; Tuesday 16 June 2020.

Suppose you are the Executive Director and have just graduated from Holmes Institute. Answer the following questions that are related to Global Foods takeover of Buderim Group.

What do you think would motivate you as the Executive Director of Global Foods to

take over Buderim Group? (3 Marks)

Explain the assessment steps you would take to guarantee the stakeholders that the Buderim take-over is profitable and in their interest. (4 Marks)

Examine the challenges you would encounter during and after the acquisition of

Buderim Group. (4 Marks)