Bank Indonesia sells half its stake in Ficorinvest Bank<\/p>\n
JAKARTA (JP): The central bank, Bank Indonesia, plans to
\ndivest half of its 71 percent stake in the publicly-listed
\nFicorinvest Bank by selling its rights shares to other parties.<\/p>\n
\"It is in line with the central bank's policy to gradually
\nreduce its ownership in banks (formerly non-banking financial
\ninstitutions) to avoid conflicts of interest,\" a director of Bank
\nIndonesia, Haryono, said yesterday.<\/p>\n
\"So, it's not a sudden decision. We just have to be careful in
\nenforcing the plan because Ficorinvest is now a public bank,\" he
\nsaid.<\/p>\n
\"We have considered that the right time to divest our shares
\nis when Ficorinvest issues rights shares later this month,\" he
\nadded.<\/p>\n
Ficorinvest's president, Supari Dhirjoprawiro, said that
\nyesterday the shareholders approved a proposal from the
\nmanagement to issue 40 million new shares at Rp 1,900 (81.U.S.
\ncents) each through a limited offering to raise a total fund of
\nRp 76 billion.<\/p>\n
\"The rights issue will double the number of Ficorinvest's
\nshares to 80 million. By selling our rights shares to other
\nparties, we will own only 35 percent of Fircorinvest's total
\nshares after the rights issue,\" Haryono said.<\/p>\n
Ficorinvest is currently 71 percent owned by Bank Indonesia, 4
\npercent by Bina Usaha Indonesia and 25 percent by the investing
\npublic.<\/p>\n
Haryono declined to mention the potential buyers of Bank
\nIndonesia's rights but he said that the new investors will be
\nselected and approved by the central bank.<\/p>\n
\"We don't want new investors with bad track records or those
\nwho have a mission at odds with Ficorinvest's current mission,\"
\nHaryono added.<\/p>\n
Ficorinvest's credits are mainly in three sectors, including
\ntrade (which accounts for 26 percent of the bank's portfolio last
\nyear), manufacturing (19.3 percent) and services (12.7 percent).<\/p>\n
The way Bank Indonesia plans to divest its shares, however, is
\nquestionable because the transaction will bring in new investors
\nwho will hold up to 35 percent of Ficorinvest's total shares.<\/p>\n
A capital market regulation requires any parties interested to
\nbuy 25 percent shares of a public company, or at least 20 percent
\nbut with an intention to control the company's management, to
\nfollow tender offer procedures.<\/p>\n
\"It's possible that two different investors will purchase the
\nshares offered with a maximum ownership of 16 percent and 19
\npercent of the total shares,\" Haryono contended.<\/p>\n
Supari refused to comment on Bank Indonesia's plan.<\/p>\n
He only said 70 percent of the rights issue proceeds will be
\nused to finance Ficorinvest's credits and the remaining 30
\npercent to pay debts.<\/p>\n
He said that Ficorinvest's net profits increased by 61 percent
\nto Rp 11.6 billion last year. Total assets rose 37.5 percent to
\nRp 1.1 trillion as of last December, while total credits grew by
\n50 percent to Rp 875 billion.<\/p>\n
\"The profit increase was a result of higher revenues from
\ninterest and fees as well as lower operating costs,\" Supari said.
\n\"Our interest revenues last year reached Rp 127.3 billion, a 94.8
\npercent higher than 1994.\"<\/p>\n
At yesterday's meeting, the shareholders also approved the
\nmanagement's proposal to pay dividends of Rp 125 per share,
\ntotaling Rp 5 billion or 43 percent of net profits. (alo)<\/p>",
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