Keppel Corporation's Buyout Offer for Keppel Land Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

On the January 21^st, 2015, a trading stoppage in the progress was put on the shares of Keppel Corporation (Keppel Corp) and Keppel Land Limited (Keppel Land). On January 23, 2015, Keppel Corp announced an offer to choose its subsidiary, Keppel Land, private. The buyout offer used a two-tier pricing strategy with a higher cost paid if Keppel Corp got a brink number of shares. Keppel Corp must have the right to obtain any distribution that might be pronounced, paid, or made by Keppel Land on or subsequent to the purchase date.

On February 2, 2015, Keppel Land made KPMG Corporate Finance Pte. Ltd. as the financial adviser to the independent firm directors regarding the offer. Minority stockholders of Keppel Land were interested in evaluating Keppel Corp’s offer and analyzing its motivations. This would require that they compute net present value and the premium of the company, as well as analyze the revenue and cost synergies of the buyout.

Learning Objective: This all-inclusive valuation case can be used? In corporate finance or financial management classes at the undergraduate and graduate grade. It presents the opportunity for students to do the following:

Comprehend the real estate manufacturing.

Evaluate the discounted cash flow assessment of an entire firm, including an approximation of the free cash flows, revenue growth rates, terminal growth rates, and appropriate weighted average cost of capital.

Perform susceptibility/scenario analyses on some of the assumptions.

Conduct a relative valuation analysis using various multiples.

Publication Date: 07/18/2016

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