Analyse af Danisco og synergier mellem Danisco og DuPont

Morten Elkjær

Student thesis: Master thesis

Abstract

The objective with this master thesis is to answer the question whether DuPont is making more value to their stockholders by buying the Danish company Danisco. DuPont bought Danisco at a quote of 700 DKK per stock, which was 31 % higher than what the Danisco stock was trading at the last day before DuPont first offer. To answer this question I asked three sub questions which all would lead to my final conclusion that also divided the thesis in three parts. In the first part of this thesis I answered the question of what the stand-alone value of Danisco would be. To answer the question I used the valuation method known as “Discounted Cash Flow” model. I based this valuation on a strategic and a financial analysis of Danisco and concluded that the stock of Danisco should be traded at a price of 652,96 DKK per stock. This price is 47,04 DKK under what DuPont paid. In the second part of the thesis I wanted to uncover how DuPont justified the premium that they paid over my estimate of the Danisco stock price, and therefore I identified what synergies that existed between Danisco and DuPont. I identified 10 synergies between the two companies, which was split by six operational and four financial synergies. In the last part of the thesis I estimated a value of the synergies between the companies. I again used a cash flow model to estimate the value of the synergies and estimated that the synergies between Danisco and DuPont were 2921 million DKK worth, with overweight in value of the operational synergies, which were estimated to be worth 2581 million DKK, and the financial synergies being worth 340 million DKK. I then concluded that DuPont made more value for their stockholders by buying Danisco. This is determined on the basis that the estimation of the stand-alone valuation of Danisco and the value of the synergies added together would make the Danisco stock worth 14 DKK more than DuPont paid.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2012
Number of pages99