Analysis of Merger of Axiata Group Bhd and Norway’s Telenor Group

Background research on Axiata Group Bhd and Norway’s Telenor Group merger

The attached articles are related to the Merger of Axiata Group Bhd. and Norway’s Telenor Group.  

Base on the attached articles and any other related news/articles, you are to perform the following list of analysis and write up your finding in a report format.

• Report Structure and Question
• Executive Summary
• Introduction 

1. Conduct in-depth background research to enhance the analysis of the merger event. Such research should demonstrate in-depth understanding on the reason or reasons of this merger. You should set up a timeline to reflect the chronicle of events based on key dates. (15%)

2. Evaluate the risks and returns/advantages to Axiata Group Bhd. in this international merger. Some risk to be considered include foreign exchange risk, different legal system etc. (20%)

3. Conduct comprehensive valuation on Axiata prior to the announcement of the merger. Your valuation should use relevant valuation technique(s) to arrive at an appropriately discounted present value (per share) for Axiata. (20%)

4. Conduct event analysis to test EMH and derive your trading profit from the event. An event analysis template is provided separately based on Chapter 14 contents of Simon Benninga textbook ‘Financial Modeling’ (4th edition). (20%)

5. You are required to demonstrate appropriate trading strategy that would be appropriate to exploit price inefficiency during the merger process. Your analysis should provide forecast on trading profit going forward until the deal is expected to complete in 2016. (15%)

Determine the event date occurred and the cut-off time should be one month after the event date, e.g. Jun 1, 2019 and your event window should have a cut-off date by Jun 30, 2019.

Respectively, your estimation window should run at least one year before the event announcement date, if you want you can simulate price behavior going forward.

• Demonstrate knowledge of the purpose and functions of global financial markets.
• Analyse the role of financial market data in supporting business decisions
• Critically evaluate the impact of the global financial markets on the business environment
• Demonstrate the ability to analyse and present quantitative data to support an argument.
• Use information technology to analyse and communicate financial data
• Reflect on your own ability to interpret and act upon the changing business environment. Late submission will be marked at 0 but will allow a resit opportunity.
• No submission will be recorded as ‘Absent’.
• Extensions will be in accordance with University policy.

You must check that all your coursework marks have been recorded accurately on Moodle and notify your module leader if you believe a mistake has been made. All grades are provisional until confirmed by the Subject Assessment Board. It is possible that notified marks may be raised or lowered by this board. Students are encouraged to keep copies (electronic) of all coursework submitted on this module.

Students are advised to consult the University Regulations* and their course handbooks regarding the penalties for and definition of plagiarism, which essentially is the deliberate and substantial insertion in your own work of material from someone else e.g. a published source such as a book or article, or simply another student’s piece of work, without acknowledging the extent or source of the quotation.

To view regulations use the University website. Referral Resubmission of assignment, by the Faculty summer re-sit deadline (posted on the module web when date confirmed).