ACQUISITION OF PT XYZ AS A TARGET THROUGH PT ABC AS A STRATEGIC PORTOFOLIO INVESTMENT RECSUE IMPLEMENTED BY A PENSION FUNDS INSTITUTION

• Main Author: VIDYA RISTYANTI (NIM: 29107381) , ANGGI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/11821
• Institution: Institut Teknologi Bandung

PT ABC and PT XYZ are subsidiaries of a financial institution and doing their business in the field of telecommunications construction. Both companies headquartered in Bandung, Indonesia. Low profit margins and high overhead costs of each company bring an idea to merge PT ABC and PT XYZ. The telecommunication industry is still considered to have experienced bright growth prospects for specialist contractors to develop the telecommunications business. This study aims to assess feasibility of merger options to increase revenue margin and the company's values, and to determine the stock exchange ratio for PT XYZ and PT ABC's merger transaction. Analysis of the merger option is done by making an assessment against each company and then compares the pre-merger value of the company post merger. Results of analysis showed that with mergers, the company will obtain synergies resulting from the increase in margin income and the value of the company so that option is recommended for merger to be realized. Stock exchange ratio of PT ABC and PT XYZ merger is 0.5268 : 1.