财务报表分析与安全性 FIN3CSF CASE STUDY 4 代写

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  • 财务报表分析与安全性 FIN3CSF  CASE STUDY 4 代写
     
    CASE STUDIES IN FINANCE (FIN3CSF) – SEMESTER 2, 2017
    CASE STUDY 4: FINANCIAL STATEMENT ANALYSIS AND SECURITY
    VALUATION
    On June 7 th 2017, Vocus Group Limited (ASX code: VOC) received an unsolicited proposal
    from Kohlberg Kravis Roberts & Co. (KKR) to acquire all of the issued capital in Vocus
    Group Limited for a cash offer price of $3.50 per share. On the day prior to the receipt of the
    merger proposal, the closing price of Vocus Group Limited shares was $2.86. The proposed
    acquisition is to be completed using a scheme of arrangement bid process if it is supported by
    the Board of Directors of Vocus Group Limited. The Board of Directors formed an
    Independent Board Committee (IBC), which held an initial meeting on the evening of June
    7 th 2017 to assess the acquisition approach from KKR and to determine a response strategy
    for the wider Board of Directors and communication to the company’s shareholders regarding
    the proposal. The indicative timetable was for the company to announce its response to the
    acquisition proposal from KKR to the market by August 21 st 2017.

    财务报表分析与安全性 FIN3CSF  CASE STUDY 4 代写
    Vocus Group Limited is an ASX-listed, vertically integrated telecommunications provider
    which operates in the Australian and New Zealand telecommunications markets. The
    company owns a national fibre infrastructure network connecting all capital cities and most
    regional cities across Australia and New Zealand, with its fibre communications network
    directly connecting to more than 5,500 buildings. Vocus Group Limited provides a portfolio
    of communications brands and products for corporate, small business, government and
    residential customers across Australia and New Zealand. The company also provides
    international internet protocol (IP) transit services, including submarine cable capacity
    connecting Australia to Singapore, New Zealand and the United States. It also operates data
    centres supporting the provision of its communication services.
    Kohlberg Kravis Roberts & Co. is a well-known unlisted private equity business which is
    based in the United States, but has undertaken various acquisition transactions and other
    investments involving listed and unlisted businesses in Australia. The company raises funds
    by issuing debentures and similar debt securities, and uses the proceeds raised for investment
    purposes, taking either minority or majority ownership stakes in businesses. The company
    then actively engages in the management and restructuring of businesses in which it invests
    and crystallises any value creation using investment exit strategies such as trade sales and
    sharemarket listings.
    The following table provides a summary of financial, structural and performance information
    for Vocus Group Limited for the June 30 th financial year ends from 2013 to 2017 (All figures,
    except for per share, issued capital and percentage statistics, are expressed in A$Million):
    2
    2013  2014  2015  2016  2017
    Key indicators 
    No. of issued shares (Mill.)  76.2234  90.8869  101.5036  528.2674  619.9819
    Market capitalisation  160.0691  432.622  585.6758  4,500.8382  2,089.3390
    Share price ($)  2.100  4.760  5.770  8.520  3.370
    Price/Earnings ratio (times)  18.261  32.828  23.648  42.814  -1.452
    Market / Book ratio (times)  2.2523  3.1550  2.9845  1.4179  0.9072
    Earnings per share ($)  0.1146  0.1500  0.2441  0.1986  -2.3214
    Dividends per share ($) 0.0100  0.0180  0.0830  0.1750  0.0600
    Dividend payout ratio (%)  8.7260  12.0000  34.0025  88.1168  -2.5846
    Trading Information 
    Operating revenue  66.4998  91.7530  149.0040  829.9380  1,820.5770
    Operating expenses  39.8472  59.4120  104.7970  616.0130  2,991.6770
    Earnings  before  interest,
    taxes,  depreciation  and
    amortisation (EBITDA)
    22.2200
    33.0730
    57.1700
    234.8980
    -1,170.9710
    Earnings before interest and
    taxes (EBIT)
    13.3545  21.3610  38.4860  156.4110  -1,364.5360
    Profit before tax  12.3195  19.5400  33.2080  132.8260  -1,405.4410
    Net profit after tax before
    abnormals
    8.7375  13.6290  24.7730  104.9120  -1,439.2020
    Net profit after tax after
    abnormals
    5.0983  12.9250 19.8500  64.2520  -1,464.8700
    Net interest expense  1.0350  1.8210  5.2780  23.5850  40.9050
    Income tax expense 3.5820  5.9110  8.4350  27.9140  33.7610
    Net operating cash flows  16.6902  24.1700  34.6940  98.0680  219.0720
    Return on total assets (%)  5.2101  6.4342  6.4623  2.2350  34.5000
    Return on equity (%)  12.2944  9.9392  12.6239  3.3051  62.8912
    Structural information 
    Cash and cash equivalents  14.1691  44.5570  15.1700  128.6290  50.1940
    Current assets  25.4160  56.0680  41.9300  333.6840  327.4850
    Property, plant & equipment  50.7770  63.3840  204.6190  522.4130  1,542.9790
    Total assets  167.7028  211.8220  383.3440  4,694.0190  4,171.5960
    Current liabilities  36.2137  26.3310  40.8780  400.5640  396.7500
    Long-term debt  56.9864  41.9310  117.9590  872.3820  1,065.8160
    Total liabilities  96.6339  74.6980  187.1050  1,519.7340  1,868.4720
    Share capital  46.0687  98.5940  144.2440  3,100.7380  3,774.8340
    Retained earnings  24.0954  35.8910  48.1480  57.0800  -1,494.4130
    Total shareholders’ equity  71.0689  137.1240  196.2390  3,174.2850  2,303.1240
    Long-term debt to Total
    assets (%)
    33.9806  19.7954  30.7710  18.5850  25.5494
    Total  liabilities  to
    shareholders’ equity (%)
    135.9721  54.4748  95.3455  47.8764  81.1277
    3
    Other relevant information relating to Vocus Group Limited or the wider corporate and
    sharemarket sectors is:
     The beta coefficient for Vocus Group Limited is 0.61, compared to the average beta
    coefficient for the telecommunications industry of 0.75.
     The 10-year Australian Government Bond yield was 2.675% on June 30 th 2017.
     The S&P/ASX 200 Accumulation Index has provided an average annual return of 9.976%
    over the most recent 8-year period.
     Consensus analyst forecasts for EBITDA and earnings per share (EPS) for the 2018
    financial year are $300 million and $0.250 per share, respectively.
     Long-term earnings (including residual earnings) and dividend growth forecasts for
    Vocus Group Limited are 4.00% and 5.00%, respectively.
     The issued share capital for Vocus Group Limited at the end of 2018 financial year is
    expected to be 670 million shares.
     Assume that the analysis is being undertaken on June 30 th 2017.
    The following table provides information on Australian listed peer companies operating in
    the same industry as Vocus Group Limited as at June 30 th 2017 (figures are in A$Million
    unless otherwise stated):
    MNF Group
    Spark New
    Zealand
    Telstra
    Corporation
    TPG

    财务报表分析与安全性 FIN3CSF  CASE STUDY 4 代写
    Telecom
    Market capitalisation  318.0412  6,684.2827  51,141.1810  4,836.2967
    No. of issued shares (Mill.)  72.7783  1,856.7452  11,893.2979  848.4731
    Share price ($)  4.3700  3.6000  4.3000  5.7000
    Book value of Equity  68.3470  1,572.3810  14,808.000  590.7770
    Enterprise value  276.8730  7,488.7131  67,487.1807  12,224.2101
    EBITDA  22.5310  969.5238  11,029.9000  791.0000
    Net profit after tax  12.5640  219.2467  4,224.900  326.6000
    Sales revenue  191.752  3,500.1174  25,912.0000  2,387.8000
    In relation to recent acquisition activity in the telecommunications sector in Australia, the
    following table provides deal multiples information for target companies from the
    telecommunications sector involved in acquisitions in the last 7 years:
    Date
    announced
    Target company
    Offer price /
    Book value
    Offer price /
    EPS
    Bid Premium
    Offered
    22/11/10  Clever Communication Australia
    Limited
    1.570  10.187  28.574%
    12/07/13  Inabox Group Limited  2.632  13.866  15.550%
    28/09/15  M2 Group Limited  2.280  26.014  28.651%
    13/09/16  BigAir Group Limited  1.910  20.923  29.787%
    As the lead financial advisor to Vocus Group Limited on the acquisition proposal from KKR,
    the Independent Board Committee has requested your firm to prepare an independent expert’s
    4
    report to assist them in forming a response and recommendation for shareholders relating to
    the proposal. This expert’s report should include the following content:
     The results and conclusions from a financial analysis of Vocus Group Limited, with
    particular focus on operating, efficiency and performance aspects of the business and,
    from this, identification of potential sources of value creation from acquiring Vocus
    Group Limited.
     An estimate of the current intrinsic (fundamental) market value of Vocus Group
    Limited’s equity shares. This valuation estimate should be determined from using a
    number of valuation metrics and approaches, and can either be presented as a point or
    range estimate.
     Based on the above analysis and any other relevant information or considerations, the
    provision of a recommendation as to whether the price offered in the acquisition proposal
    is fair and reasonable or otherwise.
    Required:
    This independent expert’s report is due to be submitted to the Independent Board
    Committee (IBC) of Vocus Group Limited by 6.00pm on Tuesday 3 rd October 2017, via
    the FIN3CSF subject LMS site. This case study contributes 15% to the overall final
    assessment in the FIN3CSF subject. This case study is to be completely individually, and
    the maximum word limit, excluding calculations and financial analysis reporting (such
    as tables), is 1,000 words.

    财务报表分析与安全性 FIN3CSF  CASE STUDY 4 代写