This Case is about Finance, International

Publication Date: 07/18/2016

On January 23, 2015, Keppel Corp declared an offer to choose Keppel Land, its subsidiary company, private. The buy out offer used a two-tier pricing strategy with a higher cost paid if Keppel Corp got a threshold number of shares. On February 2, 2015, Keppel Land made KPMG Corporate Finance Pte. Ltd. as the financial adviser to the independent business managers seeing the offer. Minority stockholders of Keppel Land were interested in analyzing its motivations and assessing Keppel Corp’s offer. This would require that they compute net present value and the premium of the firm, in addition to examine the cost and sales synergies of the buy out.

Keppel Corporation's Buyout Offer for Keppel Land Case Solution

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

Comprehend the property business.

Review the discounted cash flow valuation of a whole firm, including an estimate of terminal growth rates, earnings growth rates, the free cash flows, and proper weighted average cost of capital.

Perform susceptibility/scenario analyses on some of the premises.

Run a relative valuation evaluation using various multiples.

Share This