Analysis of Mirvac's Acquisition of James Fielding Group (Spring 2019)

This report provides a detailed analysis of the Mirvac Group's acquisition of the James Fielding Group. It examines the economic rationales behind the acquisition, focusing on the benefits for shareholders and the expansion of Mirvac's business prospects. The report explores the financial aspects, including the bid value, the increase in business funds, and the impact on earnings per share. It also discusses the strategic advantages of the merger, such as access to James Fielding Group's investments and the potential for diversified property investments. The analysis includes an evaluation of the financial performance of Mirvac, highlighting the positive impact of the acquisition on profitability and asset growth. The report concludes with a summary of the acquisition's success and the importance of shareholder evaluation in such business combinations, referencing relevant literature on mergers and acquisitions and financial performance. The report uses data from the Sydney Morning Herald and other academic sources.

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Introduction
The acquisition of the JAMES FIELDING GROUP by the Mirvac group is considered
as one of the most historical acquisition in the recent years. The Mirvac group is a public
sector organization which is situated in Australia and the main business of the organization is
regarding the development of property in a joint venture basis. After the acquisition, business
prospects of the organization have increased in such a manner that recently the organization
began to work on the transformation of the Australian Technology Park. In this study the
economic rationales have been analyzed by being one of the shareholders of the business as
depicted the impact of such kind of acquisition which took place within the business.
Discussion
The Mirvac group is expanding it business by taking a major step in acquiring
JAMES FIELDING GROUP (The Sydney Morning Herald. 2004). The target organization in
this case is the JAMES FIELDING GROUP where on the other side the bidder organization
is the Mirvac group. As a shareholder of the organization it is needed to understand the
reason behind such kind of acquisition which actually took place within the business. The
shareholders of the JAMES FIELDING GROUP were offered 0.73 Mirvac securities for
every JAMES FIELDING GROUP security. This offered was taken into consideration by the
most of the potential shareholders of JAMES FIELDING GROUP which lead them to accept
such kind of business acquisition. The actual bid value which was offered to the JAMES
FIELDING GROUP was at $478.2 million. The offer of such amount leads the business
acquisition take place and the overall business funds of the organization in that case also
increased (Caselli and Gatti 2017).

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The shareholders of the JAMES FIELDING GROUP saw this as a great opportunity
to further enhance their wealth as the financial performance of the Mirvac group was good
based on the evaluation if the annual report of the organization. The earning per share must
be identified by the shareholders which actually means that the profitability position of the
organization is satisfactory (De Grauwe and Grimaldi 2018). The acquisition actually allowed
the new alliance of the Mirvac group to join which help the organization to get the access of
the JAMES FIELDING GROUP’s $1.5 billion investments in the development of the
pipeline to $ 2.3 billion. The directors of the JAMES FIELDING GROUP quite accepted the
move and the reason behind that is operations of both the organization are effective along
with that such kind of combination will further deliver more diversified property investments.
The executive directors of the JAMES FIELDING GROUP are quite responsible for the
development of the operations which are based on the Mirvac group (Gitman, Juchau and
Flanagan 2015).
The merger of the JAMES FIELDING GROUP and Mirvac group actually boosted
the overall real estate business of the organization along with the other factors which are
associated with it. The Mirvac investment decision further helped the organization to enhance
its profitability by eight percent to $71.9 million (Hirshleifer 2015). Based on the current stats
it can be said that the total assets which is gained through the JAMES FIELDING GROUP is
about $2.28 billion which took place at June 2004. Mirvac on the other hand is looking to
enhance the growth avenues including the opportunities to manufacture the stocks which are
related to the business which is the Sydney Basic Airport and Orion. This kind of potential
investment in the real estate will automatically boost the morale of the shareholders of the
business along with the other factors associated in that case. Based on the evaluation of the
annual report of the Mirvac it is found that the financial performance of the organization is

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good and the shareholders in that case are gaining a lot of wealth out of such investment
decisions (Malhotra and Reus 2015).
It is also found that the fund management system of the organization before and after
the acquisition by the Mirvac group is effective. This further enhance the financial
performance starting from the year 2004, year after year. The organization acquired or rather
made investment in most of the renowned resources in Australia along with the business of
the organization is providing fruitful return. Based on the current economic prospects in
Australia there is a huge demand in the buying and selling of property and estates (Murray
2017). This is the major advantage which is needed to be taken by the Mirvac group to
further strengthen the overall business position. Based on the survey report in the recent years
it is found that there is economic development in the country on the basis of GDP stats
(Shoup 2017).
Conclusion
The study concludes that the acquisition of the JAMES FIELDING GROUP by the
Mirvac group became a huge success in the recent years along with the other parameters or
benefits which is shared in the process of the discussion. The shareholders must evaluate the
pros and cons in such kind of business acquisition and must take necessary steps based on the
benefits of them. The decisions which is taken by the directors of the JAMES FIELDING
GROUP became quite fruitful which is reflected in the recent years of acquisition made by
the organization. Based on the recent survey it is found that the most of the shareholders of
the JAMES FIELDING GROUP are benefitted in such kind of acquisition which took place
in the business in the financial year 2004.

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References
Caselli, S. and Gatti, S. eds., 2017. Structured finance: Techniques, products and market.
Springer.
De Grauwe, P. and Grimaldi, M., 2018. The exchange rate in a behavioral finance
framework. Princeton University Press.
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson
Higher Education AU.
Hirshleifer, D., 2015. Behavioral finance. Annual Review of Financial Economics, 7, pp.133-
159.
Malhotra, S., Zhu, P. and Reus, T.H., 2015. Anchoring on the acquisition premium decisions
of others. Strategic Management Journal, 36(12), pp.1866-1876.
Murray, J.S., 2017. Innovation, imitation and regulation in finance: the evolution of special
purpose acquisition corporations. Review of Integrative Business and Economics Research,
6(2), pp.1-27.
Shoup, C., 2017. Public finance. Routledge.

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The Sydney Morning Herald. (2004). Mirvac to acquire James Fielding Group. [online]
Available at: https://www.smh.com.au/business/mirvac-to-acquire-james-fielding-group-
20041013-gdjwr5.html [Accessed 6 Oct. 2019].