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Valuation of Common Share and Preferred Share of PT X Tbk as a Base for the Minority Shareholders to Decide on the Proposal of the Company to go to Private and Delist from Jakarta Stock Exchange

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PT X Tbk is a subsidiary of X AG who held effectively 90.4% ownership. As a consequence of the restructuring in Mother Company, PT X Tbk should change its status from Public Listed Company into Private Company. The Capital Market Supervisory Board and The Jakarta Stock Exchange had no objection on the company's intention to Go Private as long as PT X Tbk obliged the prevailing regulation.nThe Minority Shareholders approval is required in this process and should be followed by the share purchase from the public shareholders by X AG through Tender Offer procedure. The crucial point in this process is the determination of Fair Share Value, which would be used by the public shareholders as a base for their decision to sell or not to sell their shares to X AG. That Fair Share Value would be compared with the share purchase price offered by X AG in the Tender Offer. In addition to that value of the share price to be repurchased by X AG should be a price, which is attractive to the minority shareholders, otherwise they would not sell their shares to X AG.nThe Fair Share Value could be obtained by using several share valuation method. In Indonesia, there are three common methods usually used in the share valuation, which would be examined in this thesis, The Discounted Cash Flow, The Net Assets Approach and The Earnings Multiple Approach.nThe company had appointed an independent appraisal company to determined the Fair Share Value. The appraisal company used the above three-share valuation method in their calculation. The result of the share valuation would be certainly utilized by two parties. First is X AG to determine the acceptable interesting purchase price, which offered in the Tender Offer. Second are the public shareholders to be used as a benchmark against the offered purchase price from X AG.nThe purpose of this thesis is to calculate the Fair Share Value of PT X Tbk and compare it to the published Fair Share Value as a result of the independent appraisal valuation.

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Availability

M00054

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Available

Detail Information

Series Title

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Call Number

54

Publisher

: Swiss German University., 2004

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Language

English

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Subject(s)

MBA

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