Værdiansættelse af Flügger A/S: Med stillingtagen til koncernens børsnotering på NASDAQ OMX Copenhagen

Alexander Stenderup & Kaspar Frederik Gram

Student thesis: Master thesis


This thesis addresses the issue of whether or not it would be worthwhile for Flügger A/S to be listed at NASDAQ OMX Copenhagen. The motivation is the announcement by Flügger Management that the sole reason for still being listed at NASDAQ OMX Copenhagen is the company’s accumulation of PR value and professionalism. The thesis seeks to clarify what expenses Flügger is incurring by being listed in order to draw up a future budget scenario in the event of continued listing and in the event of a delisting in 2010. The objective of the budgets is to form the basis of a calculation of Flügger’s Enterprise Value at 31 July 2009 under each scenario. In order to be able to draw up budgets for Flügger in future, the thesis contains a thorough analysis of Flügger’s business through a presentation of Flügger, an analysis of its main competitors, a strategic analysis, an analysis of stock exchange aspects as well as a financial statement analysis. The analyses show that Flügger has a strong foothold on the Danish paint and wood preservatives market with a constant market share of approximately 30%, and that the company has established a good position in Sweden and Norway with a good potential for increasing its market shares in that region and in other geographical areas. The analyses also show that, compared to their competitors, Flügger is performing well financially and consequently seems to be in a sound financial situation. In the thesis, Flügger’s annual expenses for being a listed company are estimated at approximately DKK 5.9m, whereas the overall expenses in order to delist the company are estimated at approximately DKK 0.2m. In a valuation of Flügger’s business, calculations lead to a total Enterprise Value of DKK 975m if listing is continued, whereas a delisting in 2010 would result in an Enterprise Value of DKK 1,094m. In other words, the calculated share price would go up from DKK 325 per share to DKK 365 per share after the delisting. In view of a potential increase in value by DKK 119m and Flügger’s modest capitalisation of the potential offered by NASDAQ OMX Copenhagen, we conclude that it would be more profitable for Flügger to have its shares delisted.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2009
Number of pages162