Cma Case Study
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Institute of Certified Management Accountants of Sri Lanka May 2013 Examination
Integrative Case Study (ICS - 405)
Instructions to candidates: The Integrative Case Study (ICS - 405) of May 2013 Examination comprises of two scenarios; Scenario I, Scenario II and the Question paper. Scenario I Scenario I is provided in this web site and has information about the company and industry, on which the question paper will be based. This is not allowed in the examination hall. Scenario II Scenario II is a continuation of Scenario I. Scenario I together with Scenario II will be provided with the Question paper, at the Examination. Question paper The question paper will be of 3 hours duration and will have one question based on Scenarios I and II.
1
Prospects of Fraser & Neave Limited and Takeover
Scenario I
Introduction
Southeast Asian companies have become more active in mergers and acquisitions in the recent past. It was the financial news around the world that major shareholders were trying to gain the control of Fraser & Neave Limited (F&N), a well established group of companies mainly in the businesses of food & beverages, Properties and Printing and Publication. Mr. Charoen, a major shareholder of Thai Beverage Public Company Limited (Thai Beverage) showed the interest of acquiring F&N by convincing other major shareholder: Japan's Kirin Holdings company that had 15% stake in F&N. Mr. Charoen's offer price was 4.3% above the closing price of $8.51 when the offer was made. Prior to this, Overseas Chinese Bank Nominees Pte Ltd (OCBC) Group and Lee Rubber Company (Pte) Limited (“Lee Rubber”), other two major shareholders of F&N agreed to sell their combined stake of 22% in F&N at a price of $8.88 and 8.6% stake in Asia Pacific Breweries Limited (APBL) at $45 per share, to Thai Beverage Public Company Limited and Kindest Place Groups Limited respectively. Heineken NV offered $50 per share for F&N’s direct and indirect stakes in APBL
Institute of Certified Management Accountants of Sri Lanka May 2013 Examination
Integrative Case Study (ICS - 405)
Instructions to candidates: The Integrative Case Study (ICS - 405) of May 2013 Examination comprises of two scenarios; Scenario I, Scenario II and the Question paper. Scenario I Scenario I is provided in this web site and has information about the company and industry, on which the question paper will be based. This is not allowed in the examination hall. Scenario II Scenario II is a continuation of Scenario I. Scenario I together with Scenario II will be provided with the Question paper, at the Examination. Question paper The question paper will be of 3 hours duration and will have one question based on Scenarios I and II.
1
Prospects of Fraser & Neave Limited and Takeover
Scenario I
Introduction
Southeast Asian companies have become more active in mergers and acquisitions in the recent past. It was the financial news around the world that major shareholders were trying to gain the control of Fraser & Neave Limited (F&N), a well established group of companies mainly in the businesses of food & beverages, Properties and Printing and Publication. Mr. Charoen, a major shareholder of Thai Beverage Public Company Limited (Thai Beverage) showed the interest of acquiring F&N by convincing other major shareholder: Japan's Kirin Holdings company that had 15% stake in F&N. Mr. Charoen's offer price was 4.3% above the closing price of $8.51 when the offer was made. Prior to this, Overseas Chinese Bank Nominees Pte Ltd (OCBC) Group and Lee Rubber Company (Pte) Limited (“Lee Rubber”), other two major shareholders of F&N agreed to sell their combined stake of 22% in F&N at a price of $8.88 and 8.6% stake in Asia Pacific Breweries Limited (APBL) at $45 per share, to Thai Beverage Public Company Limited and Kindest Place Groups Limited respectively. Heineken NV offered $50 per share for F&N’s direct and indirect stakes in APBL