Mergers and acquisitions : the case of Zon Multimédia and Sonaecom
Autor(a) principal: | |
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Data de Publicação: | 2012 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/11682 |
Resumo: | The possible merger between Zon and Sonaecom is something that has been discussed on the market in the last years, and this dissertation aimed to make a thorough analysis of the companies and whether there is value creation with the completion of the merger. The telecommunications market in Portugal is reaching a stage of maturity, and the country's economic situation together with the intense competition makes it difficult for companies to have a high organic growth. Instead, in recent years companies had results below expectations mainly due to lower private consumption that is taking place in the country, and its market value significantly devalued. Therefore, a merger between the companies would allow the rapid creation of value for Zon and Sonaecom’s shareholders because of both cost and revenue synergies, along with the fact that the merged company would become a stronger business and would be able to compete with the main competitor, Portugal Telecom. Thus, according to the methodology explained in the literature review, I calculated the Sonaecom standalone value and the synergies from the merger, and the Sonaecom’s last closing price is found to be undervalued, with 5% upside potential, and synergies are estimated at around 131% of Sonaecom’s market capitalization1. It is therefore concluded that Zon must make a tender offer to Sonaecom offering a price of 1.21€ per share plus a premium that covers the total or partial value of synergies. |
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Mergers and acquisitions : the case of Zon Multimédia and SonaecomDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe possible merger between Zon and Sonaecom is something that has been discussed on the market in the last years, and this dissertation aimed to make a thorough analysis of the companies and whether there is value creation with the completion of the merger. The telecommunications market in Portugal is reaching a stage of maturity, and the country's economic situation together with the intense competition makes it difficult for companies to have a high organic growth. Instead, in recent years companies had results below expectations mainly due to lower private consumption that is taking place in the country, and its market value significantly devalued. Therefore, a merger between the companies would allow the rapid creation of value for Zon and Sonaecom’s shareholders because of both cost and revenue synergies, along with the fact that the merged company would become a stronger business and would be able to compete with the main competitor, Portugal Telecom. Thus, according to the methodology explained in the literature review, I calculated the Sonaecom standalone value and the synergies from the merger, and the Sonaecom’s last closing price is found to be undervalued, with 5% upside potential, and synergies are estimated at around 131% of Sonaecom’s market capitalization1. It is therefore concluded that Zon must make a tender offer to Sonaecom offering a price of 1.21€ per share plus a premium that covers the total or partial value of synergies.Tsvetkov, PeterVeritati - Repositório Institucional da Universidade Católica PortuguesaFerreira, Ana Raquel Campelo2013-07-01T13:44:33Z2012-06-0420122012-06-04T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/11682enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-08-15T01:39:06Zoai:repositorio.ucp.pt:10400.14/11682Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:09:32.920739Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Mergers and acquisitions : the case of Zon Multimédia and Sonaecom |
title |
Mergers and acquisitions : the case of Zon Multimédia and Sonaecom |
spellingShingle |
Mergers and acquisitions : the case of Zon Multimédia and Sonaecom Ferreira, Ana Raquel Campelo Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Mergers and acquisitions : the case of Zon Multimédia and Sonaecom |
title_full |
Mergers and acquisitions : the case of Zon Multimédia and Sonaecom |
title_fullStr |
Mergers and acquisitions : the case of Zon Multimédia and Sonaecom |
title_full_unstemmed |
Mergers and acquisitions : the case of Zon Multimédia and Sonaecom |
title_sort |
Mergers and acquisitions : the case of Zon Multimédia and Sonaecom |
author |
Ferreira, Ana Raquel Campelo |
author_facet |
Ferreira, Ana Raquel Campelo |
author_role |
author |
dc.contributor.none.fl_str_mv |
Tsvetkov, Peter Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Ferreira, Ana Raquel Campelo |
dc.subject.por.fl_str_mv |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
The possible merger between Zon and Sonaecom is something that has been discussed on the market in the last years, and this dissertation aimed to make a thorough analysis of the companies and whether there is value creation with the completion of the merger. The telecommunications market in Portugal is reaching a stage of maturity, and the country's economic situation together with the intense competition makes it difficult for companies to have a high organic growth. Instead, in recent years companies had results below expectations mainly due to lower private consumption that is taking place in the country, and its market value significantly devalued. Therefore, a merger between the companies would allow the rapid creation of value for Zon and Sonaecom’s shareholders because of both cost and revenue synergies, along with the fact that the merged company would become a stronger business and would be able to compete with the main competitor, Portugal Telecom. Thus, according to the methodology explained in the literature review, I calculated the Sonaecom standalone value and the synergies from the merger, and the Sonaecom’s last closing price is found to be undervalued, with 5% upside potential, and synergies are estimated at around 131% of Sonaecom’s market capitalization1. It is therefore concluded that Zon must make a tender offer to Sonaecom offering a price of 1.21€ per share plus a premium that covers the total or partial value of synergies. |
publishDate |
2012 |
dc.date.none.fl_str_mv |
2012-06-04 2012 2012-06-04T00:00:00Z 2013-07-01T13:44:33Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/11682 |
url |
http://hdl.handle.net/10400.14/11682 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/openAccess |
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openAccess |
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application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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