IBRA to select Danamon advisor by Tuesday<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) said that it
\nplanned to select by Tuesday one out of six prospective financial
\nadvisors for the sale of a majority stake in Bank Dananmon.<\/p>\n
\"The six firms are Warburg, Goldman Sachs, JP Morgan, BNP
\nParibas, Bahana and Danareksa Sekuritas. We expect to announce
\nthe winner on Tuesday, or maybe Wednesday,\" IBRA's bank
\nrestructuring unit deputy chairman I Nyoman Sender told reporters
\nover the weekend as quoted by Antara.<\/p>\n
Of the six, state-owned PT Bahana Sekuritas and PT Danareksa
\nSekuritas are the only local firms.<\/p>\n
IBRA wants to sell up to 20 percent of the bank through a
\npublic offering and another 51 percent stake to a strategic
\ninvestor.<\/p>\n
Selling the first stake to the public is aimed at testing the
\nmarket while helping to set a benchmark price for the sale of the
\nmajority stake to the strategic investor.<\/p>\n
According to Sender, Bank Danamon would produce satisfactory
\nbids from investors but declined to specify the expected amount
\nof these bids.<\/p>\n
The publicly listed Bank Danamon is 99.4 percent owned by IBRA
\nwith the remaining stake being in the hands of the investing
\npublic.<\/p>\n
IBRA took over Bank Danamon after extracting a cache of bad
\nloans from the bank and replacing them with Rp 47 trillion (about
\nUS$5.2 billion) worth of recapitalization bonds following the
\n1997 economic crisis.<\/p>\n
Selling Bank Danamon is part of the economic reform program
\nunder the government's Letter of Intent (LoI) to the
\nInternational Monetary Fund (IMF).<\/p>\n
The bank should have been sold by this year, but political
\nmeddling that prolonged the prior sale of Bank Niaga and a lack
\nof investor interest pushed back the timetable.<\/p>\n
Under the latest update to the IMF, the government expects
\nBank Danamon's sale to be finalized next year.<\/p>\n
Earlier this month, IBRA secured approval for the sale from
\nthe House of Representatives' Commission IX, which oversees
\nfinancial affairs.<\/p>\n
Approval from the legislature is not mandatory, yet it is
\nstill crucial in order to avoid a political backlash during or
\nafter the sale.<\/p>\n
Bank Danamon is the third bank on IBRA's divestment list,
\nfollowing the sales of majority stakes in Bank Central Asia (BCA)
\nin March and Bank Niaga. Next after Bank Danamon is Bank Lippo.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-to-select-danamon-advisor-by-tuesday-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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