IBRA to receive Rp 2.67t next week from BII sale<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) is expected to
\nreceive a total of Rp 2.67 trillion in cash next week from the
\nsale of 71 percent of the shares in publicly listed Bank
\nInternasional Indonesia (BII), according to agency Chairman
\nSyafruddin Temenggung.<\/p>\n
He said on Friday that some Rp 1.9 trillion would come from
\nthe Sorak Financial consortium, which bought a 51 percent stake
\nin BII last month. The money would be received on Monday.<\/p>\n
The consortium is led by South Korea's Kookmin Bank and
\nSingapore's Temasek Holdings Pte. Ltd.<\/p>\n
The remaining Rp 700 billion would be obtained from the sale
\nof another 20 percent stake through the stock market, which is
\nexpected to take place on Monday.<\/p>\n
Syafruddin said that with the completion of the BII sale, the
\nagency has been able to meet the government's target to raise
\nsome Rp 26 trillion in cash to help finance the current 2003
\nstate budget.<\/p>\n
After selling the 71 percent stake, IBRA will still have
\nanother 22.5 percent stake in the bank. The remaining shares are
\nin the hands of public investors.<\/p>\n
IBRA, set up in 1998, took over various assets from troubled
\nbanks and indebted bank owners in the wake of the late 1990s
\nfinancial crisis. The agency is mandated to restructure and sell
\nthe assets to raise cash to help finance the state budget. The
\nhuge amount of hard currency obtained by IBRA has been seen as a
\ncontributing factor to the current stability in the rupiah.<\/p>\n
The government has decided to shut down IBRA in February next
\nyear. All of its remaining assets will be transferred to a
\nspecial government entity.<\/p>\n
Syafruddin said that once the money from Sorak has been
\nreceived, a shareholder's meeting would be held on Tuesday to
\nselect the new board of directors and commissioners of BII.<\/p>\n
According to the sales and purchase agreement, the Sorak
\nconsortium will have the right to fill in the position of the
\npresident director and president commissioner of BII. The
\nconsortium can also assign two other people as director and a
\ncommissioner.<\/p>\n
BII, the former financial flagship of the Sinar Mas Group
\nconglomerate, is one of the country's top ten banks with total
\nassets of around Rp 36 trillion and has some 1.1 million
\ncustomers.<\/p>\n
The government can appoint two people to fill the position of
\nvice president director and vice president commissioner.<\/p>\n
Meanwhile, Jakarta stock market investors aggressively
\npurchased shares in BII on expectations of a better performance
\nof the bank with the entry of a new management team.<\/p>\n
By midday on Friday, the shares rose by 16 percent on the
\nJakarta Stock Exchange amid an overall positive market sentiment.<\/p>\n
\"Buying is on hopes that Temasek and Kookmin Bank will be able
\nto improve the bank's performance,\" a trader was quoted by Dow
\nJones as saying.<\/p>",
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"sponsor": "Okusi Associates",
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