Bidding price \"good and fair,\" says Niaga bidder<\/p>\n
Dadan Wijaksana
\nThe Jakarta Post
\nJakarta<\/p>\n
Although refusing to disclose its bidding price, the Malaysia-
\nbased financial group, Commerce Holding-Assets Bhd., said the
\ncompany had made a \"good and fair\" bid for the government's 51
\npercent stake in publicly listed Bank Niaga.<\/p>\n
\"The bid (price) is good and fair,\" Rozali bin Mohamed Ali, a
\nsenior executive at the company, told a press briefing on
\nTuesday.<\/p>\n
Commerce is one of the two qualified bidders for the
\nacquisition of a controlling stake in the mid-sized bank. The
\nother contender is a consortia led by ANZ Banking Group Ltd. The
\ntwo submitted their final bids late on Monday to the Indonesian
\nBank Restructuring Agency (IBRA).<\/p>\n
Comments from Rojali came amid lingering concerns that the
\ncrucial divestment plan might be canceled due to low bids offered
\nby the two bidders.<\/p>\n
IBRA, which holds a 97.15 percent stake in Bank Niaga, has
\nhinted it might scrap the strategic sale plan if the offered
\nprices were too low, and was considering other ways of selling,
\nincluding secondary offering via the stock market to optimize the
\nprice.<\/p>\n
Talk of possible cancellation halted the bullish run of the
\nrupiah against the U.S. dollar on Tuesday.<\/p>\n
The rupiah strengthened slightly to Rp 8,870 from Rp 8,880 at
\nMonday's close.<\/p>\n
Whether or not the planned divestment would go ahead as
\nscheduled will be decided in this week's meeting of the powerful
\nFinancial Sector Policy Committee (FSPC).<\/p>\n
FSPC groups together economic ministers and is in charge of
\nIBRA's sale of assets and debt restructuring program worth more
\nthan Rp 1 trillion (US$112 million).<\/p>\n
The International Monetary Fund has asked the government not
\nto delay the Bank Niaga sale plan.<\/p>\n
State Minister of State Enterprises Laksamana Sukardi did not
\nrule out on Tuesday the possibility that the divestment could be
\ncanceled, saying, \"If the offered prices were far lower than the
\nmarket price, it is better to sell it through the (stock)
\nmarket.\"<\/p>\n
Rojali acknowledged all the cancellation talks but warned of
\nthe impact it may have on the country's crucial efforts in
\nrestructuring its ailing banking sector.<\/p>\n
Improvement in the banking sector, analysts said, should be
\nthe main prerequisite for the revival of foreign confidence in
\nthe economy.<\/p>\n
Following the completion of the sale of BCA, the Bank Niaga
\nsale should provide a further test for the government as to
\nwhether it would carry on with its economic reform program.<\/p>\n
Niaga's sale comes after IBRA completed the sale of 51 percent
\nof BCA in March, with a consortium led by U.S.-based investment
\nfirm Farallon Capital emerging victorious.
\n Asked about what plans his company has on the bank if it wins
\nthe bid, Rozali said it would consider lowering the proportion of
\nthe recap bonds in the bank's balance sheet and would be more
\naggressive in expanding its loans.<\/p>\n
Currently Niaga holds some Rp 9.7 trillion worth of recap
\nbonds.<\/p>",
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