Banks may buy into Kanindotex<\/p>\n
JAKARTA (JP): Bank Indonesia Governor J. Soedradjad Djiwandono
\nsaid on Saturday that the plan of Bank Bumi Daya (BBD) and Bank
\nPembangunan Indonesia (Bapindo) to acquire stakes in the heavily
\nindebted Kanindotex Group faces no legal constraints.<\/p>\n
He said that the two banks could acquire stakes in the
\nKanindotex Group, provided that their equity participation was
\nonly temporary.<\/p>\n
Soedradjad said that, while the Banking Act prohibits banks
\nfrom owning shares in companies, \"it is not against the law if
\nthe equity participation occurs within the framework of (the
\nbanks') rescuing their loans,\" he said.<\/p>\n
The Kanindotex Group, which operates three textile companies
\nin Central Java, has bad debts of about Rp 932.94 billion
\n(US$432.55 million) with BBD and Bapindo, making the two banks
\nthe de facto owners of the group.<\/p>\n
The question whether banks are allowed to own a stake in the
\ngroup became a subject of debate after a delay in the signing of
\nan agreement on the takeover of the textile group by a consortium
\nled by businessman Bambang Trihatmodjo.<\/p>\n
The signing of the takeover agreement, which was scheduled to
\ntake place on March 31, was delayed at the last minute,
\nreportedly because of Minister of Finance Mar'ie Muhammad's
\ndissatisfaction over the contents of the contract.<\/p>\n
The minister is said to have demanded that the consortium
\nreserve about 20 percent of the Kanindotex Group's shares for the
\ntwo banks and a further 20 percent for GKBI, the group's present
\ncaretaker.<\/p>\n
Benefit<\/p>\n
Sources said that the minister considered the planned takeover
\ndeal, which would allow the consortium to settle the Kanindotex
\nGroup's problem loans within nine years at interest rates of
\nbetween four and eight percent per annum, to be unfair, giving
\ntoo much benefit to the consortium. The consortium includes
\nBambang Yoga Soegama, son of a former chief of the national
\nintelligence agency, and Johannes Kotjo, a former executive of
\nthe Salim Group.<\/p>\n
The consortium's controversial takeover plan was also opposed
\nby the Indonesian Chamber of Commerce and Industry (Kadin) and
\nthe economic affairs board of the ruling political group,
\nGolongan Karya (Golkar).<\/p>\n
Kadin and Golkar's economic affairs board recently asked the
\ngovernment to give priority, in seeking a solution to the textile
\ngroup's debt problems, to GKBI, which is formally still owned by
\nthe former convict Robby Tjahyadi.<\/p>\n
Late last year, Bambang Trihatmodjo, who chairs the widely
\ndiversified Bimantara Group, and Johannes Kotjo jointly acquired
\na majority stake in Mayatexdian, a listed affiliate of the
\nKanindotex Group.<\/p>\n
Business analysts described the move by Bambang's consortium
\nto take over the Kanindotex Group as a mere trick by which Robby
\nTjahyadi was seeking to regain control of the group.<\/p>\n
Rizal Ramli, the managing director of the Econit business
\nconsulting firm, predicted that the Kanindotex Group would be
\nincorporated into Mayatexdian if the consortium was allowed to
\ntake over the company.<\/p>\n
\"Merging the Kanindotex Group into the publicly-listed
\nMayatexdian is another form of back door listing,\" Ramli said.
\n(hen)<\/p>",
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"sponsor": "Okusi Associates",
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