SYNERGY VALUATION OF PT XL AXIATA TBK PLAN TO ACQUIRE PT LINK NET TBK

• Main Author: Alamsyah Hakim Ahmad, Andri
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62532
• Institution: Institut Teknologi Bandung

The existence of the COVID-19 pandemic that has hit the world has indirectly provided an opportunity for telecommunication companies. The number of internet users during this pandemic is increasing rapidly. XL Axiata is aware of this and has prepared several strategies. One of them is the plan to acquire Pt Link Net Tbk. This acquisition was carried out to expanding the network coverage and strengthen XL Axiata's fixed broadband sector. By making this acquisition, XL Axiata's fixed broadband sector will become the second largest after Indihome. Before the company makes an acquisition, it is also necessary to do an in-depth analysis. This is done to find out whether the acquisition is necessary and whether there will be synergies arising from the acquisition. In this thesis, external analysis (PESTEL, Porter Five Forces, Competitor Analysis), internal analysis (Financial Ratio Analysis) will be carried out and will be summarized using SWOT analysis. Synergy valuation will be carried out using the Discounted Cash Flow (DCF) method with the Free Cash Flow to Firm (FCFF) approach. This research shows that several potential synergies occur in acquisitions including spending efficiency, expanding network coverage, increasing the number of users, and being able to collaborate to create new internet service products and bundling. Meanwhile, from financial synergies, there will be an increase in revenue, cash flow, market share, and there is the potential to increase the company's debt capacity. Based on the calculation with two synergy scenario assumption obtained a synergy of Rp 20T and Rp 11T. It can be said that the acquisition is success and will be beneficial for XL.