MERGER BANK VALUATION CASE STUDY : BANK DANAMON-BANK NUSANTARA PARAHYANGAN

• Main Author: Averina Suyagi, Ria
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/45862
• Institution: Institut Teknologi Bandung

Banks are financial intermediaries institution that channel funds from excess funds (surplus units) to those who need funds (deficit units) at the specified time. In Indonesia, mergers and acquisitions are often carried out as business expansions. Merger is one of the best ways to strengthen a business foundation if a merger can lead to synergy. The objective of this final project is to analyze the effect of the merger on PT Bank Danamon Tbk and PT Bank Nusantara Parahyangan Tbk and to analyze what recommendation are appropriate for PT Bank Danamon Tbk to achieve better value after the merger. Based on the valuation, there will be no synergy between PT Bank Danamon Tbk and PT Bank Nusantara Parahyangan Tbk. On 1 May 2019, Bank Danamon officially merged with Bank Nusantara Parahyangan, where the two banks had joined on the basis of OJK Regulations, namely Regulation No 39/POJK.03/2017. Through this research, authors analyzing business issues using the Internal and External Analysis approach. The financial ratios of each bank are internal factors analyzed. The external factors analyzed are the PEST. The valuation method used is Free Cash Flow to Equity using an asset based model approach. From this research analysis, the value of Bank Danamon is 28,096,797 million, while Bank Nusantara Parahyangan is 492,318 million. The results of the merger valuation of the two banks amounted to 19,092,939 million. This value is lower than the value of Bank Danamon before merging. It can be concluded that the results of the merger of Bank Danamon and Bank Nusantara Parahyangan did not benefit Bank Danamon, but instead destroyed the value of Bank Danamon itself.