BII to acquire motorcycle financing firm WOM<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
In a bid to cope with the growing competition in the country's
\nbanking sector, publicly listed Bank Internasional Indonesia
\n(BII) plans to acquire a controlling stake in motorcycle
\nfinancing firm PT Wahana Ottomitra Multiartha (WOM).<\/p>\n
BII president director Henry Ho said the bank had completed
\nthe signing of a conditional sales and purchase agreement (CSPA)
\nwith WOM, and planned to purchase a 75 percent stake in the
\ncompany.<\/p>\n
\"Signing the CSPA is the first step toward the acquisition of
\nWOM. We expect to complete this transaction by the end of the
\nfirst quarter of next year,\" Ho told reporters in a press
\nconference on Thursday.<\/p>\n
The next step would include obtaining approval from relevant
\nregulators, including the central bank, the Ministry of Finance,
\nthe Capital Market Supervisory Agency (Bapepam), and the Jakarta
\nStock Exchange (JSX), he said.<\/p>\n
Ho refused to disclose the value of the acquisition, pending
\nthe approval of regulators.<\/p>\n
The acquisition will help boost BII's ability to provide loans
\nto a broader spectrum of the public, especially to the consumer
\nsector, and an additional distribution channel to cross-sell
\nproducts that the bank has to offer to the market.<\/p>\n
BII's gross lending grew by 52.2 percent to Rp 12.37 trillion
\n(US$1.36 billion) in the first semester of this year as against
\nRp 4.24 trillion in the same period last year.<\/p>\n
Ho said BII was likely to issue subordinated debts to finance
\nthe acquisition program, however, the bank could not disclose the
\namount and the terms for the planned debts.<\/p>\n
Like many other banks, BII plans to tap the business
\nopportunity provided by the impressive growth in consumer
\nspending, which has become the main engine of the country's
\neconomic growth since the Asian financial crisis in late 1997.
\nConsumer spending accounts for 70 percent of the country's gross
\ndomestic product (GDP).<\/p>\n
A similar move to purchase a financing company has also been
\ntaken by Bank Danamon, the country's fifth largest bank by
\nassets, in April. The bank, which is controlled by a consortium
\nof Singapore investment firm Temasek Holding and Germany's
\nDeutsche Bank, has bought a 75 percent stake in automotive
\nfinancing firm PT Adira Dinamika Multi Finance for Rp 850 billion
\n(US$94 million).<\/p>\n
BII, the country's sixth largest bank by assets, is 52 percent
\nowned by Kookmin Bank, South Korea's largest bank, and
\nSingapore's Temasek. BII's shares on the JSX ended unchanged at
\nRp 170 on Thursday.<\/p>\n
WOM is one of the leading players in the country's motorcycle
\nfinancing business with 77 branches and sub-branches throughout
\nJava and North Sumatra. At present, the company is expanding its
\ndistribution network in South Sumatra, Kalimantan and Sulawesi.<\/p>\n
Last year, the company has assets valued at Rp 756 billion and
\na net profit of Rp 53.7 billion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bii-to-acquire-motorcycle-financing-firm-wom-1447893297",
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