Mergers and acquisitions (with specific reference to the Singapore context)

• Main Authors: Poh, Kristellynna Chor Chor, Chan, Jenny Yin Ling, Neo, Annie Ah Yen
• Other Authors: Lee Lip Nyean
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/64486
• Institution: Nanyang Technological University

Although a significant number of mergers and acquisitions is being undertaken in Singapore annually, the scale of local merger activities pales in comparison to those in the US and UK. Nevertheless, mergers and . acquisitions have played an important part in the growth of several public listed companies in Singapore over the years and they are regarded as a useful tool for diversification and expansion. Three aspects of mergers and acquisitions with specific reference to the local context are covered in this study. The principle focus of the · study is the determination of the predominant motive underlying takeover activities. The predominant ·motive was identified via case studies on a sample of 20 cases of mergers or acquisitions over the past ten years and which satisfy the laid down criteria. The second part of the study examines how the regulatory framework affects takeover activities. The third part analyzes the defenses employed by target companies against unwelcome bids. A comprehensive literature review pertaining to the above-mentioned aspects of mergers and acquisitions was carried out. In addition, the offer documents, circulars to shareholders, press reports and other relevant articles were thoroughly scrutinized to identify the predominant motive of the takeover for the case study analysis and to detect defended acquisitions. The study found that in general there were more than one motive in each case of merger or major motives identified in the acquisition. The study include diversification, target undervaluation, financial motives, operational synergy and desire for growth . However, from the analysis of the 20 cases, diversification is constituted to be the predominant motive of this study. The regulatory framework governing mergers and acquisitions in different countries affect takeover practices in varying degrees due to the differing objectives of the regulatory authorities . The differences in the regulatory environment between Singapore, the US and the UK are also highlighted in this study. Finally, the findings of the study revealed that most takeover cases are settled amicably between the acquirers and the target companies. If defences were put up, they are subtle compared to those in the US and UK; this is largely due to the more stringent legal framework in the local context.