Ned Group Case Study

Case Study 1                                                  Z5095964

1. The key elements of Carlyle’s thesis to make the investments is based on maximizing shareholder’s wealth. After the takeover action, NED group will have increased market growth which will lead to its better performance in market. In addition, the takeover will provide NED with professional technical support and help improve their performance.
2. NED takes scheme arrangement. The main advantage of it is that compared with market takeover, the scheme arrangement requires lower percentage of approval acceptance thus makes the transaction more certain.
3.         When the company is performing very well with good management, it’s difficult to buy them. You have to find opportunities when the market is disappointed or the company is running down. So the NED group took unsolicited takeover offer for Coates Hire.
4.  The benefit could be management efficiency. But the downside could be split share control and the conflict management between public company and private company. They have different objectives between shareholders so the joint bid would affect their decision outcomes.

6.  The potential risks to integration would be culture issues.

8.  The offer to Coates Hire shareholders that was structured to including both a capital payment and dividend will help save shareholders ‘tax paid. Cause dividend can provide tax deduction benefit to investors.

9.  Reverse break fee is paid by the buyer if it fail to satisfy the acquisition agreement. The parties agree to it for the provision of the agreement.

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