Bank Bali to decide rights issue plan this month<\/p>\n
JAKARTA (JP): Publicly listed Bank Bali expects to hold an
\nextraordinary meeting later this month to approve its rights
\nissue plan.<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) said on
\nThursday that the agency was still waiting for approval from the
\nCapital Market Supervisory Agency (Bapepam) to proceed with its
\nlimited public offering.<\/p>\n
Jerry Ng, the agency's deputy chairman, said that all
\nshareholders would be allowed to use preemptive rights to buy the
\nrights shares, which would be issued to finance the bank's
\nrecapitalization cost.<\/p>\n
"In the forthcoming rights issue, preemptive rights are open
\nto all parties who meet Bapepam's requirements. The government
\nthrough IBRA, acts only as standby buyer," Jerry said.<\/p>\n
The bank was taken over by the IBRA in July last year after
\nshareholders failed to raise the bank's capital adequacy ratio
\n(CAR) to the minimum level of four percent.<\/p>\n
The recapitalization cost of Bank Bali has increased to Rp 4.6
\ntrillion.<\/p>\n
Jerry attributed the increase in the recapitalization cost to
\nthe sharp drop in the bank's assets quality. "The second reason
\nis due to a projected loss, for the period of February - April
\n2000, of approximately Rp 200 billion," he said.<\/p>\n
The rights issue plan, initially scheduled for October, last
\nyear, has been delayed several times following the high-profile
\nscandal surrounding the channeling of funds out of Bank Bali for
\npolitical purposes, and the withdrawal of would-be investor
\nStandard Chartered Bank.<\/p>\n
SCB was allowed to buy a 20 percent stake in Bank Bali from
\nthe government after the rights issue but decided to withdraw its
\nbid due to opposition from the bank's employees.<\/p>\n
Bapepam also refused to approve Bank Bali's rights issue plan
\ndue to inadequate disclosure of information related to owners of
\nshares held by foreign institutions.<\/p>\n
Bapepam contended that Bank Bali and IBRA failed to provide
\nnecessary details about the owners of about 40 percent of the
\nbank's shares currently held at Deutsche Boerse Clearing AG (DBC)
\nof Germany.<\/p>\n
Bapepam chairman Herwidyatmo said early this week that the
\nrights issue could go ahead even without the disclosure of the
\nowners of the bank's shares kept by the German company.<\/p>\n
"But undisclosed owners will have no voting rights during the
\nplanned shareholders meeting," he added. (udi\/hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-bali-to-decide-rights-issue-plan-this-month-1447893297",
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"sponsor": "Okusi Associates",
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