Værdiansættelse i forbindelse med fusioneringen af Novozymes og Chr. Hansen

Abstract

Danish based companies Novozymes A/S and Chr. Hansen Holding A/S are both world leading companies within the biosolutions industry and are listed on the Danish stock exchange OMX C25. Their business segments range from bioenergy in biodiesel all the way to the enzymes used in washing powder and the alternative protein sources, used in the dairy we eat. This paper aims to cover the conditions regarding the merger between Novozymes and Chr. Hansen. The focus will be from the point of view of a Chr. Hansen shareholder who has a choice to make regarding believing in the future merger or not. This means deciding if the shares should be kept with the expectation of gaining more value with the merged company or collect the current returns with the given premium. The paper contains a valuation of the future company and a discussion of relevant factors a Chr. Hansen shareholder must be aware of, to make well-founded decision. The methodology used for the valuation of the combined company is the classic approach which encompasses a strategic and a financial analysis. The strategic analysis focuses on the overall internal and external environment around both companies whereas the financial analysis focus on each of the companies individually. Different relevant scientific literature combined with practical experiences from experts regarding to the M&A subject is used. This ensures different views and opinions to be discussed for the benefit of the Chr. Hansen shareholder. The paper concludes a valuation of the future company on 148.762 million DKK in equity value with the given estimates and inputs for example a constant WACC on 6,54 percent. The comparison of the calculated value and the current market value of the two companies combined per 14.04.2023 finds that the calculated value is less than the actual value. Based purely on the valuation, a Chr. Hansen shareholder should sell his/hers shares. At the same time the sensitivity analysis clearly displays even small changes in the inputs will change the valuation considerably. This shows the significance of correct inputs and estimations and the consequences when it is not the case.