IBRA to name winning bidder for BCA shares<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nwill name the winning bidder for its stake in the publicly listed
\nBank Central Asia (BCA) next week, agency deputy chairwoman Felia
\nSalim said on Tuesday.<\/p>\n
\"We'll name the winner between June 25 and June 28,\" Felia
\nsaid following a meeting with Finance Minister Rizal Ramli.<\/p>\n
She said that there were seven bidders competing to purchase
\nthe BCA shares.<\/p>\n
\"We're on schedule to complete the divestment of the BCA
\nshares soon,\" she added. Felia declined to provide further
\ndetails, including the size of shares to be sold by the agency.<\/p>\n
The agency said late last month that there were 10 local and
\nforeign institutional investors which had submitted bids for BCA
\nshares.<\/p>\n
The government nationalized BCA, the country's largest private
\nbank, in 1998 in the aftermath of the devastating financial
\ncrisis. The government divested a 22.5 percent stake in BCA in
\nMay last year through an initial public offering (IPO).<\/p>\n
The government was supposed to have further divested a
\nmajority stake in BCA late last year as part of an agreement with
\nthe International Monetary Fund, which is providing a
\nmultibillion dollar bail out loan to the country, but it was
\ndelayed due to the unfavorable market conditions at the time.<\/p>\n
The delay had irked the IMF, prompting it to also delay the
\ndisbursement of its third loan tranche to the country.<\/p>\n
The government has planned to divest another 40 percent stake
\nin BCA this year. But the House insisted that the second
\ndivestment must be conducted via a combination of a private
\nplacement mechanism and secondary public offering.<\/p>\n
Felia said last month that the agency was considering selling
\nup to 30 percent shares in BCA to a strategic investor and the
\nremaining 10 percent through secondary offering.<\/p>\n
The House has also demanded that the former owner of BCA, the
\nSalim Group, must not be allowed to reenter BCA by purchasing the
\nbank's shares from IBRA.<\/p>\n
The government via IBRA is also required to divest some 51
\npercent shares in the publicly listed Bank Niaga, which was also
\nnationalized following the financial crisis.<\/p>\n
IBRA plans to complete the Bank Niaga sale, entirely through
\nstrategic sales, some time in October.<\/p>\n
IBRA is mandated to raise some Rp 27 trillion in cash this
\nyear to help finance the 2001 state budget deficit. So far the
\nagency has managed to only raise just over Rp 7 trillion.<\/p>\n
The proceeds from the share sales of BCA and Bank Niaga would
\ncontribute to the IBRA cash target.<\/p>\n
There has been concern that amid current political
\nuncertainty, the agency might not be able to meet the cash
\ntarget, putting the 2001 state budget at risk.<\/p>\n
The agency's asset sale program has also been undermined by
\nmassive political interference.<\/p>\n
IBRA's recent deal with Malaysia's Kumpulan Guthrie Bhd, which
\nhad agreed to purchase palm oil plantations from the agency,
\nnearly collapsed after some legislators protested the deal citing
\nnational interests.<\/p>\n
Only after high level lobbying and protracted negotiations,
\ndid the deal go through.(rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-to-name-winning-bidder-for-bca-shares-1447893297",
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