VALUATION OF SYNERGY MERGER (CASE STUDY: MERGER BETWEEN PT GUNAWAN DIANJAYA STEEL TBK AND PT JAYA PARI STEEL TBK)

• Main Author: Rahma Nur Sulistyo, Fitria
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/37080
• Institution: Institut Teknologi Bandung

PT Gunawan Dianjaya Steel Tbk is one of the public companies engaged in manufacturing hot rolled steel plates. PT Gunawan Dianjaya Steel Tbk made a decision to merge with PT Jaya Pari Steel Tbk, which is also listed as a public company in manufacturing hot rolled steel plates. The merger of the two companies aims to improve the efficiency of the company because the two companies engaged in the same industry and owned by a majority sharesholder by Gwie Gunawan. The merger of the two companies used a share conversion scheme. PT Jaya Pari Steel Tbk merger cost isRp386.925.000.000. The stock conversionratio between PT Gunawan Dianjaya Steel Tbk and PT Jaya Pari Steel Tbk is 1: 1,34. This study aims to assess whether synergy can occur in the merger of the two companies. The expected synergy is the increase in production capability, profitability and efficiency. The potential synergy is from the strategy, operations, and customers. In this study the author assessed the Discounted Free Cash Flow (DCF) when the company stood as an independent company and when the company was merged. PT Jaya Pari Steel Tbk is combined with prices that are overvalued. Even though the price is above the company's value, the merger of the two companies can bring synergy. Synergy is produced from the two companies that are engaged in the same field and under the same majority shareholder.The impact of synergy is the efficiency in operation, economies of scale. The implication from the synergy is growth rate for the company is positive.