You have been appointed as a consultant group to evaluate the feasible takeover of SAPURA ENERGY BERHAD for your client.

Using financial and trend analysis, you are required to come up with a 10 years projection of the Financial performance and position of the company :

-based on - the revenue projection

- Profit margin

- Operating overheads

- Financial structure - borrowing, equities and the Finance costs

- Capital expenditure

Estimate the cost of acquisition of between 51 - 80% of shares in the company and treat it as your initial capital expenditure

Estimate the share price at the end of 5 years and 10 years - to make some exit by selling some shares without losing control of the company

Use projected annual EPS and average PER in the industry to estimate the annual share price.

Use Present value analysis to determine the viability of the takeover exercise.