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Case Study Of Smhad And UMW Berhad

Decent Essays

MEMO
To: ABTRAC.INC
From: ALIBABA FA.INC
Re: Possible Acquisition
This memo provides overview of potential target companies and an evaluation of their further prospects for acquisition purpose. ABTRAC.INC a MNC from Amsterdam intends to strengthen its position at Malaysia by Merger &Acquisition. We have identified 2 companies, Sunway Berhad and UMW Berhad as potential acquisition based on their financial performance and strong market footprint.
Company Profile
Sunway Berhad
Sunway Berhad established in 1974 as tin-mining company Sunway group becomes Malaysia’s most successful real Estate and hospitality group. The Sunway group has 12 business divisions namely Property, Construction, Hospitality, Retail, Leisure, Commercial, Trading & Manufacturing, …show more content…

Today UMW has diversified it business in Automotive, Equipment, Manufacturing & Engineering and Oil & Gas sectors. UMW is the sole distributer in Malaysia for Toyota. UMW also manufactures and assembles Toyota, Hino and Daihatsu in Malaysia. UMW is the largest shareholder (38%) of PERODUA which has a niche market in Malaysia. In 2002, UMW established the Oil & Gas business unit. This unit mainly responsible for oil rig, transmission and drilling pipes manufacturing, fabricate onshore-offshore structure and onshore-offshore activities. The UMW group extends it presents to Singapore, Indonesia, Thailand, Myanmar, Vietnam, Papua New Guinea, Australia, Taiwan, China, India, Oman and …show more content…

UMW Berhad
Over the year UMW Berhad shows good annual increasing trend on revenue and profitability. However in year 2013 lower contribution in earning by its automotive manufacturing operations in India were affected by slowdown in Indian automotive industry. The company posted revenue increase by 17% and 6% respectively in 2012 and 2011. YEAR 2013 2012 2011 2010
REVENUE 13,951,460 15,816,888 13,535,753 12,820,229
Future Prospects
Sunway Berhad
In year 2013 Sunway Construction was awarded plenty of projects that would help boost company profit for next couple of years. Among the prominent project are:
• North East Car Park (NEC) underneath KLCC Park by Citi tower worth RM304 mil
• Substructure work at KLCC worth EM222mil
• Afiniti Medini by Khazanah worth RM282.9 million

In addition to this, the company also involving in government project such as Elevated Bus Rapid Transit BRT, New MRT project, Kelana Jaya LRT line extension and UTIM campus extension. Company also will be eyeing MRT Project Putrajaya line recently announced by PM.

UMW

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