Govt plans to sell 10% Danamon stake this year<\/p>\n
Indonesia's government plans to sell a 10 percent stake in PT
\nBank Danamon, the nation's fifth-largest lender, on the stock
\nmarket this year to help finance its deficit gap.<\/p>\n
The Finance Ministry asked Perusahaan Pengelola Aset (PPA), a
\ngovernment agency in charge of selling state assets, to \"prepare
\nthe sale\" of 10 percent of the lender, it said in a statement.<\/p>\n
The stake in Danamon is worth Rp 1.75 trillion (US$191
\nmillion) at the current market price.<\/p>\n
The government is selling assets, including bank stakes, to
\nraise funds to cover a budget deficit estimated at Rp 26.3
\ntrillion this year.<\/p>\n
The deficit reached Rp 25.5 trillion in the first nine months
\nof the year.<\/p>\n
Asset sales are also aimed at recouping part of the more than
\nRp 450 trillion it spent to bail out lenders after the 1997 Asian
\nfinancial crisis.<\/p>\n
Perusahaan Pengelola asked Bank Danamon to suspend trading of
\nits shares with the Jakarta Stock Exchange on Thursday, said
\nMohammad Syahrial, president director of PT Perusahaan Pengelola,
\nin a faxed statement.<\/p>\n
In June, UBS AG was hired to help manage the sale on the stock
\nmarket of minority stakes in Danamon and three more lenders this
\nyear.<\/p>\n
The government has a 20.5 percent stake in Danamon, which is
\n62 percent controlled by Temasek Holdings Pte., the Singapore
\ngovernment's investment company, and Deutsche Bank AG.<\/p>\n
The government owns 5 percent of Bank Central Asia (BCA),
\nIndonesia's second-largest lender, 20.8 percent of PT Bank
\nInternasional Indonesia, the No. 6, and 21.5 percent of PT Bank
\nNiaga, the ninth-biggest, according to Bloomberg data. --
\nBloomberg<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-plans-to-sell-10-danamon-stake-this-year-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}