ACQUISITION EFFECT TOWARDS VALUE OF THE SUBSIDIARY FIRMS: STUDY OF HOLDING STRATEGY BETWEEN PERUM PERHUTANI & PT. INHUTANI I-V

• Main Author: Laras Hapsari (NIM 19014049), Ardista
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21204
• Institution: Institut Teknologi Bandung

Indonesia as one of the large forest country in the world must be supported by a strong <br /> <br /> forestry business sector to maintain the industry existence. However, in reality, there <br /> <br /> still exist the forestry companies that have unhealthy financial performance based on <br /> <br /> the standard of Minister for State-Owned Enterprises (SOEs). Then at the end of 2014, <br /> <br /> the Indonesian government held a holding strategy between several SOEs companies, <br /> <br /> which then acquisationed PT. Inhutani I-V as a subsidiary of Perum Perhutani. This <br /> <br /> strategy has an objective to improve the corporate value of subsidiaries, especially those <br /> <br /> who have poor financial performance records. This research is then intended to <br /> <br /> investigate whether the holding strategy is successful in achieving its main objective or <br /> <br /> not by comparing the value of the subsidiary firms in two year before (2013-2014) and <br /> <br /> after the acquisition (2015-2016). The method used in this research is Discounted Cash <br /> <br /> Flow and Enterprise Value Analysis to calculate the value of a subsidiary. Then it <br /> <br /> continued with Difference-in-Difference Analysis to know the significance of the parent <br /> <br /> role of the company to change the value of subsidiary after the acquisition. The result of <br /> <br /> analysis shows that the change of subsidiary value after acquisition tends to fluctuate on <br /> <br /> DCF method result and tends to increase in some subsidiary on EV analysis result. <br /> <br /> Then, on the difference-in-difference analysis shows that there is no sign of the parent <br /> <br /> role of the company to change the value of subsidiary after the acquisition. The result of <br /> <br /> this study can be used to be an evaluation for the parties involved in the acquisition of <br /> <br /> this strategy, including the government as a holding organizer.