Permata sale likely to take more than a month<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) admitted on
\nThursday that it might not be able to conclude the sale of a
\ncontrolling stake in Bank Permata by the time its term expires
\nnext month.<\/p>\n
If that is the case, the sale of Bank Permata would then be
\ncarried out by the succeeding institution, which is to be set up
\nat a later date, IBRA deputy chairman I Nyoman Sender said.<\/p>\n
\"We (IBRA) will definitely run the divestment process. But, if
\nthe current one-month period proves to be insufficient, then the
\nprocess will be continued by the new agency,\" said Sender,
\nindicating the institution, as yet unestablished, which is to
\ntake over from IBRA and manage the unsold assets.<\/p>\n
IBRA is scheduled to be closed down on Feb. 27. The new
\ninstitution will be under the supervision of the office of the
\nState Minister for State Enterprises.<\/p>\n
IBRA planned to complete the sale of a 71 percent stake in
\nPermata before Feb. 27, but as of now -- with less than a month
\nleft to its term -- the sale process has not begun, as the agency
\nis yet to secure approval from the House of Representatives.<\/p>\n
IBRA is also now finalizing the sale of a majority stake in
\nBank Lippo.<\/p>\n
Over the past two years, it has already sold majority stakes
\nin other banks under its supervision: Bank Central Asia (BCA),
\nBank Niaga, Bank Danamon and Bank Internasional Indonesia (BII).<\/p>\n
Permata was formed two years ago from a merger of five ailing
\nbanks controlled by IBRA: Bank Bali, Bank Universal, Bank
\nArthamedia, Bank Prima Express and Bank Patriot. It is the 10th
\nlargest lender in the country and currently boasts assets of
\naround Rp 30 trillion (US$3.5 billion).<\/p>\n
Meanwhile, Sender detailed the agency's sale plan of selling a
\n51 percent stake in Bank Permata through a strategic sale, with
\nthe remaining 20 percent stake to be sold via block sale and drip
\nsale.<\/p>\n
IBRA holds a 91.3 percent stake in the bank.<\/p>\n
Sender said the agency was hopeful that a hearing with the
\nHouse could be held soon to help kick off the sale process.<\/p>\n
IBRA was set up in 1998 to manage assets from indebted former
\nbankers and to sell them to cover the budget deficit. For 2004,
\nthe government has targeted proceeds from the assets sales at Rp
\n5 trillion, which the agency must meet before its closure.<\/p>",
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