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Meadow Indonesia Essay

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Over the past few years, middle income segment in Indonesia is growing rapidly and has a direct impact to Indonesian economy. According to Euromonitor middle income segment is around 52.4% of the total population in 2010 which is predicted to get wider considering the salary increase every year. One industry that impacted directly by the increase of middle income segment is fashion retail segment, in specific department store. The fashion retail in Indonesia is dominated by department stores, which is around 98% by sales. PT. Matahari Department Store Tbk is one of the biggest retailer of attire, cosmetic, accessories, and homeware which is supplied by local and international high quality suppliers. The first outlet of Matahari is a kid’s cloth store, opened in 24 October 1958 in Pasar Baru Jakarta. Later on in 1972, Matahari opened its first department store. Today, Matahari has own …show more content…

Meadow Indonesia acquired 98% of PT. Matahari Department Store shares and on September 2011 PT. Meadow Indonesia mergered with PT. Matahari Department Store. This action result in negative number of equity of PT. Matahari Department Store. The reason of negative equity that PT. Matahari Department Store has is because the merger transaction with PT. Meadow Indonesia. Based on appraiser opinion (KJPP) the fair market value equity of PT. Matahari Department Store is Rp 7.812.802.938.165 or equal to Rp 2.678, on the other hand the fair market value of PT. Meadow Indonesia equity is Rp 8.017.337.523.435 or equal to Rp 19.167.394. We can see that the fair market value equity of PT. Meadow Indonesia is higher than fair market value equity of PT. Matahari Department Store. Theoretically, the shares of PT. Meadow Indonesia are conversed to 7.158.620 of PT. Matahari Department Store shares. But PT. Meadow Indonesia propose to use conversion rate of 6,846,948, so that there will be no dilution for PT. Matahari Department Store share holder or new equity

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