Bank Duta-Bank Umum Tugu merger approved<\/p>\n
JAKARTA (JP): Shareholders of publicly listed Bank Duta
\nyesterday endorsed a plan to merge with Bank Umum Tugu, owned by
\ntimber tycoon Mohamad \"Bob\" Hasan, a long-time golfing partner of
\nex-president Soeharto.<\/p>\n
The merged banks, which will take the new name of Bank Palapa,
\nhave Rp 8.13 trillion (US$556.85 million) in total combined
\nassets as of the end of last March, and Rp 460 billion in paid-up
\ncapital -- well above the Rp 250 billion minimum requirement.<\/p>\n
The new bank's president, Muchtar Mandala, said after the
\nextraordinary shareholders meeting that Bank Palapa's capital
\nadequacy ratio (CAR) would exceed the minimum 4 percent level
\nrequired by the government.<\/p>\n
He would not disclose the new bank's CAR, but said that Bank
\nDuta's CAR alone totaled 13 percent at the end of 1997.<\/p>\n
At least four other banks had showed interest in joining the
\nnew bank, said Muchtar, previously the president of Bank Duta. He
\nwould not provide names, however.<\/p>\n
Publicly listed Bank Umum Nasional (BUN) initially planned to
\nmerge with Bank Duta but decided to back out after it was taken
\nover by the Indonesian Bank Restructuring Agency (IBRA) due to
\nhuge liquidity loans from Bank Indonesia.<\/p>\n
Unlisted Bank Bukopin similarly backed away from initial
\ninterest after the government recently abolished the minimum
\npaid-up capital requirement, Muchtar said.<\/p>\n
BUN, also owned by Bob Hasan, reportedly needs over Rp 10
\ntrillion ($747 million) in cash to meet the minimum 4 percent CAR
\nrequirement or face liquidation.<\/p>\n
Bank Palapa is 22 percent publicly owned, while 6 percent is
\ncontrolled by the bank's cooperatives unit and the remaining 72
\npercent is equally owned by Hedianto, Ali Affandi and Zaid
\nHussein -- top officials of three social foundations controlled
\nby Soeharto.<\/p>\n
The shareholders also agreed yesterday to appoint Sonni Dwi
\nHarsono as the chair of the new bank's board of commissioners.
\nSonni is the president director of Tugu Pratama, Bank Umum Tugu's
\nparent company.<\/p>\n
Yesterday's meeting also saw the acceptance of Bob Hasan's
\nresignation as Bank Duta's chairman.<\/p>\n
Many of the country's ailing banks indicated late last year
\nthat they would embark on ambitious merger plans to strengthen
\ntheir capital base in the wake of the economic crisis and
\ndeclining market confidence in the sector.<\/p>\n
The merger plans, however, seemed easier said than done. Only
\nbanks under the Bakrie Group and Bank Duta have so far completed
\nmerger deals. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-duta-bank-umum-tugu-merger-approved-1447893297",
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