SHARES VALUATION ANALYSIS IN MERGER AND ACQUISITION A CASE STUDY: PT BANK NUSANTARA PARAHYANGAN TBK AND PT BANK DANAMON INDONESIA TBK

• Main Author: Septianus Nugraha, Jemmy
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/41651
• Institution: Institut Teknologi Bandung

The condition of the national banking in the face of crisis severely impacted on the economy of Indonesia, one contributing factor is less strong capital structure of banks. This prompted the government to create the banking system is healthy, strong and efficient in order to create a stable financial system in order to encourage the growth of the national economy. In addition to require minimum capital for commercial banks, the regulator in this case the Financial Services Authority (FSA) also issued a Single Presence Policy through the Financial Services Authority Regulation No. 39 / POJK.03 / 2017 on Single Presence In Indonesian Banking organize a party can only be a holder controlling stake in one bank. The concept of these policies require the owner of the bank to consolidate its controlled banks such as through merging, forming a holding company in the field of banking (Bank Holding Company). MUFG Bank is the controlling shareholder of Bank BNP and Bank Danamon. Under the sole ownership regulations then MUFG Bank must comply with these rules, the steps taken MUFG Bank is to merge the two banks. In the merger, each bank will value of its stock, the study aims to estimate the fair market value of the stock of 100% shares of both banks with the assumption that both banks have a sustainable business "going concern". To analyze the valuation of these shares, the authors analyze both internal and external, and using several valuation methods such as Discounted Cash Flow (DCF) and Free Cash Flow to Equity (FCFE) which is based on projected net cash flows, methods comparison of companies listed on the stock exchange as well as the merger company comparison method as the basis for estimating the value of the shares. Each method is given weight, 60% for the Discounted Cash Flow method (DCF), 30% for method comparison of companies listed on stock exchanges, and 10% merged company comparison method. Based on the method of calculation, obtained estimated value of stock for both banks. For BNP stock market value of Rp 1.64 trillion, while Bank Danamon amounted to Rp 54.99 trillion.