Jintan Manis Berhad would like to acquire Jintan Putih Berhad via an exchange of stock at a price of RM49 for each share of Jintan Putihs stock. Both Jintan Manis Berhad and Jintan Putih Berhad have no debt outstanding. Consider the following are premerger information:

Jintan Manis Berhad Jintan Putih Berhad

Shares outstanding 1,600 units 400 units

Price per share | RM43 RM47

Jintan Manis Berhad estimates that the incremental benefit from this exercise to be worth RM200,000. From the above information, should Jintan Manis Berhad proceed with this acquisition exercise? Show relevant workings to support your answer. (10 Marks)