M&A proposal

: acquisition of Orior AG by Valora Holding AG

Abstract

This work aims to analyse the potential acquisition of Orior AG by Valora Holding AG, two firms that operate in the convenience food industry in Switzerland, from a strategic and financial point of view. For that, an analysis of the underlying industry and firms has been conducted, followed by a valuation of both firms as well as potential synergies, and concluded with a discussion regarding the deal structure. The results show that the target, Orior AG, is currently undervalued with a share price of 82.90 CHF as of 21 May 2021, compared to a DCF valuation of 107.61 CHF. Potential synergies that might result from the envisaged transaction amount to 543 CHFm. Therefore, this work proposes an acquisition of 100% of shares in Orior AG at a 21.5% premium, resulting in a price per share of 100.73 CHF and a final transaction price of 655 CHFm, which should be paid in cash funded by internally generated cash and debt.

Date of Award	30 Jun 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	António Borges de Assunção (Supervisor)