IBRA sells 17.5% Bank Danamon stake<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) said on Monday it
\nhad sold a 17.5 percent stake in publicly listed Bank Danamon at
\nRp 1,325 per share, and would press ahead with the planned
\ndivestment of other banks.<\/p>\n
IBRA chairman Syafruddin Temenggung said the divestment of
\nBank Danamon was completed late last week via a block sale
\nmechanism.<\/p>\n
He said most of the shares (some 891 million) went to local
\ninvestors (55 percent), while the remainder were bought by
\nforeign investors including the current controlling shareholder,
\na consortium called Asia Financial Indonesia.<\/p>\n
He said the sale was oversubscribed as the agency received
\noffers for up to 4.4 billion shares during book building on
\nThursday and Friday.<\/p>\n
Last month, the agency sold a 2.45 percent stake in Bank
\nDanamon via the stock market. Proceeds from the sale of the
\ncombined 20 percent stake totaled Rp 1.29 trillion.<\/p>\n
The Asia Financial Indonesia consortium is owned by the
\nSingapore government's investment arm Temasek Holdings and
\nDeutsche Bank, which acquired a 51 percent stake in Danamon in
\nMay at Rp 1,202 per share.<\/p>\n
IBRA now owns a 28.35 percent stake in Danamon.<\/p>\n
IBRA took over a number of ailing banks in the wake of the
\nlate 1990s financial crisis. The agency is mandated to return the
\nbanks to health and sell government ownership in them to raise
\nfunds to help finance the state budget deficit, which this year
\nis expected to reach Rp 34.4 trillion, or about 1.8 percent of
\ngross domestic product.<\/p>\n
Elsewhere, Syafruddin said the agency would start the block
\nsale of a 19 percent stake in Bank Niaga this week. The agency
\nstill hold a 45.1 percent stake in the publicly listed bank after
\nit sold a controlling 51 percent stake to Malaysia's Commerce
\nAsset Holdings Bhd. last year.<\/p>\n
He said the agency would allocate a greater portion of the 19
\npercent stake for local investors.<\/p>\n
Syafruddin also said the planned sale of a 52 percent stake in
\nthe publicly listed Bank Lippo was on track, and was expected to
\nbe completed in October.<\/p>",
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