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,
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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
Sunway group is property-construction corporations. It is one of biggest and leading corporation in Malaysia with 12 business in different sectors across 50 location in worldwide. It also have approximately 13,000 employees and was established in 1974. Sunway Group involved in various types of industries to make their corporation to go global. There are types of 12 types of sectors such as, construction, hospitality, property, education, commercial, quarrying, retail, leisure, trading and manufacturing, building materials, healthcare and real estate investment trust (REIT). Sunway Group have won over 200 awards nationally and internationally and was listed in FTSE4 Good Bursa Malaysia Index. Sunway’s C.A.R.E. (Community, Aid,
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Have some of your known ones taken up the act of relocating from one place to another? If yes, did you try getting in touch with them as to how their moving experience was? Well, everyone would have their own views that state the fact either in positive or negative terms.
Toyota Motors Company is multinational Japanese vehicle producer, an enterprise that has it 's headquartered at Toyota, Aichi. Toyota Motors are the biggest world 's producer of the autos about the statistics of 2013 by the quantity of vehicles. Toyota was additionally the greatest maker of the autos in 2012 and has been the initial a car producer that delivered ten million vehicles for each year. It is likewise recorded the most significant assembling organization in Japan of the market capitalization and income. The engines business delivers its vehicles
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The Company operates through its owned fleet of nearly 375 buses, which includes the Multi Axle Volvo seater buses, sleeper buses and semi sleeper buses. Its passenger transportation business operates in the States of Karnataka, Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Rajasthan and
The Sunway Group established in 1974. It is one of Malaysia’s lending public listed property-construction corporations with 12 businesses across 50 locations worldwide and 13,000 strong employee base.
Shazi Visram, organizer and CEO of a $130-million (deals) toddler nourishment logo, had her "moment of readability" while getting a MBA at Columbia—but not inside the classroom. She changed into travelling with a associate, a working mother of twins, who turned into feeling regretful for no longer having the capability to make custom made nourishment for her youngsters. within the wake of doing some examination, Visram watched that toddler sustenance gadgets had scarcely evolved next to the 1930s and supplied low edges for shops.
Today, Sunway Berhad becoming one of Malaysia’s largest public listed property-construction corporations with a combined market capitalization of RM13 billion, a 14,000 strong employee base and 12 business divisions across 50 location worldwide. The business divisions include trading and manufacturing, quarry and building materials, leisure,
The list of M&As analysed in this study were extracted from two databases: Bloomberg L.P and Zephyr. The reason for choosing these two sources were the fact that they were the only relevant databases that the researcher had access to. Having two databases gives a more round scope of M&A transactions and the share prices were extracted from Bloomberg L.P as Zephyr do not have any share price information. The criteria of the sample are as follows: the M&A deal was announced between 01/01/2003 and 31/12/2014, the deal to be completed, the acquiring country should be one of the GCC members (Saudi Arabia, Qatar, United Arab Emirates, Kuwait, bahrain, Oman) and finally the acquirer must be a listed company in its country’s stock exchange.
The company is well known in Malaysia and is suited for the South East Asian market. The company holds a large portion of market share here because this region has less competitors and the company is accustomed to the region’s culture.
The year, 2015, has seen a resurgence in cross-regional mergers and acquisitions (Cross-Regional, 2015). Cross-regional mergers and acquisitions are on track for activity to increase by 18% year-over-year (Cross-Regional, 2015). Cross-regional mergers and acquisitions could reach $733B if current momentum continues; this would represent 23% of all merger and acquisitions activity across the globe (Cross-Regional,