You are required to evaluate the buyout offer from SIA on behalf of Hillhouse Capital. The report shall be professionally structured (preceded by a brief executive summary) to address the following questions for your client:
1. From their perspective, is the buyout offer a fair deal? Would you advise Hillhouse Capital to accept SIA's latest offer of SG$0.45, given that they had paid an average price of SG$0.67 per Tigerair share? (Apply both relative valuation & intrinsic valuation model) *note that your model should be stressed test with sensitivity and scenario analysis.
2. Should the share valuation take into account synergies that might result from the acquisition? Given that Hillhouse Capital is a $20B hedge fund, what other options are available to them? Should Hillhouse Capital exercise their right to buy SIA shares at SG$11.1043?
Assignment Files -
https://www.dropbox.com/s/6z9vhonc2j6biqr/Assignment%20Files.rar?dl=0