caseism

The Shell-BG Group Tie-Up: Yes or No? Case Solution & Answer

The Shell-BG Group Tie-Up: Yes or No? Case Solution

In April 2015, Shell used to pay 0.4454 of its B shares and 383 cent in money for each BG share in an offer valued at $70 billion. Shell had to look for approval from at the very least 50% of its investors, and BG Group would need the support of 75% of its investors for the offer to go through.

With fuel oil rates in the low $30s/bbl, the market was stressed that Shell’s perspective of the future was overoptimistic. Shell leading execs required to create a company case to win investor assistance, which may turn into a case of overpromising and underdelivering to financiers. Trainees acquire an awareness of 3 appraisal strategies – affordable money circulations (DCF), net property worth (NAV) and market multiples – and of the level of sensitivity of the offer worth to modifications in forward oil costs.

This case is about  RISK MANAGEMENT

PUBLICATION DATE: October 04, 2016

Share This

LOOK FOR A FREE CASE STUDY SOLUTION

JUST REGISTER NOW AND GET 50% OFF ON EACH CASE STUDY