CASE STUDY "Certainly, COVID-19 has already affected the way M&A transactions are being looked at, from the initial due diligence stage until its completion. The usual due diligence checklist is now no longer good enough and must be expanded and the sellers will be more cautious than usual when providing representations and warranties (R&Ws) as they will, as much as possible, try to carve out COVID-19 related effects from the R&Ws. This is just the beginning of a new development in M&A transactions and until the vaccine is found, we will see many more issues which are usually considered as non-deal breakers" to be now considered as points of importance." (AZMI & ASSOCIATES, 12 November 2020). II You are required to choose TWO companies from the list of companies provided below. ONE company Group A and ONE company Group B. Group A Petronas Gas Bhd (PetGas) Tenaga Nasional Bhd Carlsberg brewery Malaysia Berhad United Plantation Berhad Group B Nestle Malaysia Bhd LPI Capital Bhd Fraser & Neave Holdings Bhd Kuala Lumpur Kepong Berhad Required: Answer the following questions based on the financial statements for financial year ending 2019 and 2020. Required a. Introduction on the two selected companies. b. (Answer should cover name of company, major product and services, company's share market price, major products & market share, high lights of big results on financial performance and success story). (15 marks) Estimate value of the company A based on the following approaches. i. Free Cash Flow Valuation Model (8 marks) ii. Asset-Based Valuation Model (8 marks) iii. Price-Earnings Ratio Valuation Model (8 marks) iv. Dividend Growth Model (8 marks) Average value of company A based on 4 models analysed above. (8 marks) V. c. Estimate value of the company B based on the following approaches. i. Free Cash Flow Valuation Model (8 marks) ii. Asset-Based Valuation Model (8 marks) iii. Price-Earnings Ratio Valuation Model (8 marks) iv. Dividend Growth Model (8 marks) Average value of company B based on 4 models analysed above. (8 marks) V. d. Conclusion. You are expected to share your learning experience through application of Free Cash Flow Valuation Model, Asset-Based Valuation Model, Price- Earnings Ratio Valuation Model, Dividend Growth Model and Dividend Growth Model how these corporate valuation models support the decision makers in merger and acquisition of companies. (5 marks) (Overall Total 100 marks) Note: Refer Appendix 1 for the remaining marks allocation. The total marks for this assignment is 100% but it carries 15% of overall assessment for this module. Page 7 of 12 ASSESSMENT CRITERIA MARKS MARKS AWARDED 15 % Question (a) Introduction on Company A and Company B. Question (b) i) Free Cash Flow Valuation Model 8% ii) Asset-Based Valuation Model 8% Valuation iii) Price-Earnings Ratio Model 8% iv) Dividend Growth Model 8% 8% v) Average value of company A based on 4 models analysed above. Question (b) i) Free Cash Flow Valuation Model 8% ii) Asset-Based Valuation Model 8% Valuation iii) Price-Earnings Ratio Model 8% iv) Dividend Growth Model 8% 8% 5 % v) Average value of company A based on 4 models analysed above. Question (d) Learning experience through application of 4 corporate valuation models and how these valuation could support merger and acquisition process TOTAL MARKS Weightage for Individual Assignment 100% 15% CASE STUDY "Certainly, COVID-19 has already affected the way M&A transactions are being looked at, from the initial due diligence stage until its completion. The usual due diligence checklist is now no longer good enough and must be expanded and the sellers will be more cautious than usual when providing representations and warranties (R&Ws) as they will, as much as possible, try to carve out COVID-19 related effects from the R&Ws. This is just the beginning of a new development in M&A transactions and until the vaccine is found, we will see many more issues which are usually considered as non-deal breakers" to be now considered as points of importance." (AZMI & ASSOCIATES, 12 November 2020). II You are required to choose TWO companies from the list of companies provided below. ONE company Group A and ONE company Group B. Group A Petronas Gas Bhd (PetGas) Tenaga Nasional Bhd Carlsberg brewery Malaysia Berhad United Plantation Berhad Group B Nestle Malaysia Bhd LPI Capital Bhd Fraser & Neave Holdings Bhd Kuala Lumpur Kepong Berhad Required: Answer the following questions based on the financial statements for financial year ending 2019 and 2020. Required a. Introduction on the two selected companies. b. (Answer should cover name of company, major product and services, company's share market price, major products & market share, high lights of big results on financial performance and success story). (15 marks) Estimate value of the company A based on the following approaches. i. Free Cash Flow Valuation Model (8 marks) ii. Asset-Based Valuation Model (8 marks) iii. Price-Earnings Ratio Valuation Model (8 marks) iv. Dividend Growth Model (8 marks) Average value of company A based on 4 models analysed above. (8 marks) V. c. Estimate value of the company B based on the following approaches. i. Free Cash Flow Valuation Model (8 marks) ii. Asset-Based Valuation Model (8 marks) iii. Price-Earnings Ratio Valuation Model (8 marks) iv. Dividend Growth Model (8 marks) Average value of company B based on 4 models analysed above. (8 marks) V. d. Conclusion. You are expected to share your learning experience through application of Free Cash Flow Valuation Model, Asset-Based Valuation Model, Price- Earnings Ratio Valuation Model, Dividend Growth Model and Dividend Growth Model how these corporate valuation models support the decision makers in merger and acquisition of companies. (5 marks) (Overall Total 100 marks) Note: Refer Appendix 1 for the remaining marks allocation. The total marks for this assignment is 100% but it carries 15% of overall assessment for this module. Page 7 of 12 ASSESSMENT CRITERIA MARKS MARKS AWARDED 15 % Question (a) Introduction on Company A and Company B. Question (b) i) Free Cash Flow Valuation Model 8% ii) Asset-Based Valuation Model 8% Valuation iii) Price-Earnings Ratio Model 8% iv) Dividend Growth Model 8% 8% v) Average value of company A based on 4 models analysed above. Question (b) i) Free Cash Flow Valuation Model 8% ii) Asset-Based Valuation Model 8% Valuation iii) Price-Earnings Ratio Model 8% iv) Dividend Growth Model 8% 8% 5 % v) Average value of company A based on 4 models analysed above. Question (d) Learning experience through application of 4 corporate valuation models and how these valuation could support merger and acquisition process TOTAL MARKS Weightage for Individual Assignment 100% 15%