Four bidders join final race for BCA<\/p>\n
Berni K. Moestafa, The Jakarta Post, Jakarta<\/p>\n
Four bidders out of the original nine remain in the race for Bank
\nCentral Asia (BCA) as the deadline for submitting the final bids
\npassed on Monday, although no date has yet been set for naming
\nthe winner.<\/p>\n
Among the four are British-based Standard Chartered Plc, and
\nthe U.S. investment firm Farallon Capital, a statement by the
\nIndonesian Bank Restructuring Agency (IBRA) said late on Monday.<\/p>\n
Out of the race are the Trimegah Consortium, Indonesian
\nRecovery Fund Limited (IRCL), Malaysian Plantation Group,
\nThailand's Dynamic Choice, and the Berca Consortium.<\/p>\n
The final four bidders have also undergone composition changes
\nwith PT Berca Indonesia joining Standard Chartered along with the
\nSingapore Investment Corp Pte and Prudential Plc.<\/p>\n
U.S. investment firm Newbridge Capital is no longer listed as
\na member of the GKBI consortium, which is still in the race,
\naccording to the statement.<\/p>\n
IBRA chairman I Putu Gede Ary Suta said the agency would
\nannounce the winner after Bank Indonesia completed its fit and
\nproper tests on some of the bidders. He did not, however, know
\nwhen this would be.<\/p>\n
The last hurdle for the final bidders will consist of two
\nevaluation stages, Ary Suta said.<\/p>\n
In what he called the drop dead test, the first stage would
\nfilter out investors even before looking at their final bids.<\/p>\n
Here, the bidders must, among other things, produce a warrant
\nstating that they have no links with the Salim Group, while also
\npassing Bank Indonesia's fit and proper test.<\/p>\n
The remaining bidders will then proceed to the second stage,
\nwhere their offer prices may win them half the battle.<\/p>\n
At this stage, the choice of the winning bidder will be 50
\npercent decided by the bidders' offer prices, 25 percent by the
\nterms and conditions they are seeking, and 20 percent by the
\nmembership structure of the consortium (if any) and the quality
\nof its lead.<\/p>\n
Bidders must also outline their business plans for BCA, with
\nthis being worth five percent of the criteria weighting.<\/p>\n
Ary Suta said the price offers in the final bids covered the
\nwhole 51 percent stake in BCA, although 21 percent of the shares
\nwould be sold later under an option.<\/p>\n
\"It'll be a put option for the government, and call option for
\nthe investor,\" explained Soebowo Musa, deputy chairman of IBRA's
\nBank Restructuring Unit (BRU).<\/p>\n
Under the put option, the investor must buy the 21 percent
\nstake in BCA if the government offers it, while the call option
\nrequires the government to sell the stake if the investor asks
\nfor it.<\/p>\n
Monday's closing of the final bids marked a milestone in
\nending the long and intricate process of returning BCA to the
\nprivate sector.<\/p>\n
Attempts to sell BCA to a strategic investor floundered due to
\ntoo much politicking, and interference from legislators.<\/p>\n
In the end, selling BCA became a litmus test for the
\ngovernment in pushing ahead with strategic asset sales, with its
\ncredibility being on the line in the eyes of the investment
\ncommunity.<\/p>\n
BCA final bidders<\/p>\n
1. The Farallon Capital Consortium. Lead: Farindo Holdings
\nLtd. (Mauritius). Members: Alaerka Investment Ltd, owned by
\nshareholders of cigarette producers PT Djarum<\/p>\n
2. Bank Mega Consortium<\/p>\n
3. GKBI Consortium. Members: PT Jamsostek, GKBI Investment,
\nPT Saratoga Investment Sedaya and PT Rifan Financindo Asset
\nManagement<\/p>\n
4. Standard Chartered Consortium. Members: Government of
\nSingapore Investment Group Pte, Ltd., Prudential Plc and PT
\nBerca Indonesia. --Source: IBRA<\/p>",
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