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(c) En Khairul and En Mosbah are best friend since their primary school time. Due to the pandemic covid 19, both of them were retrenched

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(c) En Khairul and En Mosbah are best friend since their primary school time. Due to the pandemic covid 19, both of them were retrenched from their previous employment. Both of them have sum amount of capital to set up a new business together. If both of them decide to build up the business as one entity, briefly explain the benefits and risk for them of developing this kind of business. 3/6 (5 marks) (Question 3) (a) On 21 December 2016, Malaysia Building Society Bhd (MBSB) had proposed the merger through acquisition of Asian Finance bank (AFB) to Bank Negara Malaysia (BNM). AFB is a foreign financial institution which operated in Malaysia. Due to the global financial crisis starting from 2008, AFB was much affected and keep incurred losses year by year. Board of directors of MBSB were decided to take over the AFB in order to get the bank licensing. They went through a lot of process and effective by 2nd April 2018 all the operations of AFB are under control of MBSB and MBSB known as MBSB Bank Berhad. Based on the above case, briefly explain FIVE (5) motives of companies involving in this kind of practice. (10 marks) (b) Before the acquisition of AFB, the market value of MBSB and AFB were RM250 million and RM15 million respectively. The offer from MBSB to AFB was at cost of RM17.2 million which above the market value and number of share outstanding for MBSB and AFB were 25 million and 34 million respectively. Based on the information given, calculate: i. Number of shares to be exchange for the acquisition. (4 marks) ii. Share price of merged firm. (4 marks) iii. The synergy value created by this merger. (2 marks) (c) En Khairul and En Mosbah are best friend since their primary school time. Due to the pandemic covid 19, both of them were retrenched from their previous employment. Both of them have sum amount of capital to set up a new business together. If both of them decide to build up the business as one entity, briefly explain the benefits and risk for them of developing this kind of business. 3/6 (5 marks) 25 marks

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