Temasek, Deutsche Bank consortium wins Danamon stake<\/p>\n
M. Taufiqurrahman and Dadan Wijaksana, The Jakarta Post,
\nJakarta<\/p>\n
A consortium of Temasek Holdings Pte. Ltd. and Deutsche Bank is
\nset to become the new owner of Bank Danamon after it won an
\nauction on Monday for a 51 percent stake in the bank.<\/p>\n
Temasek Holdings is an investment subsidiary of the Singapore
\ngovernment.<\/p>\n
Chairman of the Indonesian Bank Restructuring Agency (IBRA)
\nSyafruddin Temenggung said that the consortium, called Asia
\nFinancial Indonesia, made a price offer of Rp 1,202 (14 U.S.
\ncents) per share, compared to the agency's floor price of Rp
\n1,160 per share.<\/p>\n
Syafruddin said the consortium would have to undergo a two-
\nweek fit and proper test by the central bank before it officially
\nbecomes the new owner of publicly listed Bank Danamon, which is
\none of the country's top ten banks.<\/p>\n
\"If IBRA agrees with the fit and proper test from the central
\nbank, the consortium will then be designated as the new owner of
\nthe bank, following a sale and purchase agreement,\" he said.<\/p>\n
Based on the offered price, IBRA estimates that the 51 percent
\nstake could generate about Rp 3 trillion in proceeds, Syafruddin
\nsaid.<\/p>\n
The agency is hoping to raise a total of $500 million selling
\nthe Bank Danamon stake. Syafruddin said IBRA planned to
\nimmediately sell another 20 percent stake through the stock
\nmarket.<\/p>\n
The cash-strapped government has said the proceeds would go
\ninto the government's coffers to be used partly to cover this
\nyear's state budget deficit, estimated at Rp 34.4 trillion, or
\n1.8 percent of the country's gross domestic product (GDP).<\/p>\n
What's more important, however, is the smooth-going of the
\nsale process, which should send positive signals to foreign
\ninvestors that the country is committed to economic reform
\nprograms.<\/p>\n
Selling local banks such as Danamon to credible foreign
\ninvestors should also fit in perfectly with the government's
\nefforts to restructure the country's troubled banking sector,
\nwhich is still feeling the pinch of the late 1990s economic
\ncrisis.<\/p>\n
Last year, the government sold Bank Central Asia and Bank
\nNiaga for the same reasons.<\/p>\n
Danamon's shares closed on Monday 5.5 percent lower at Rp
\n1,300, before IBRA's announcement.<\/p>\n
The government, through IBRA, owns 99.36 percent of Danamon.<\/p>\n
IBRA took over Bank Danamon in the late 1990s after bailing
\nthe bank out at a huge cost of Rp 47 trillion. The bank was
\npreviously owned by tycoon Usman Admadjaja.<\/p>\n
The Temasek-Deutsche Bank consortium beat a local consortium
\nof Bank Mega and PT Bhakti Capital Indonesia. Another consortium,
\nled by Ban Artha Graha, did not submit its final bid.<\/p>\n
The new Temasek investment marks the growing role of Singapore
\ngovernment-linked companies in the Indonesian corporate sector.<\/p>\n
Singapore Technologies Telemedia Pte. Ltd. acquired a 49
\npercent stake in the state-owned telecommunications firm PT
\nIndosat late last year.<\/p>\n
Singapore Telecommunications Ltd., the city state's biggest
\nphone company, owns a 35 percent stake in Indonesia's largest
\nmobile phone company PT Telkomsel.<\/p>\n
Temasek spokeswoman Eva Ho told Dow Jones that the Singaporean
\ninvestment company has a 85 percent share of the joint venture
\nwith Deutsche Bank, which made the bid for Bank Danamon.<\/p>\n
Financial Performance<\/p>\n
--------------------------------------------------
\nIndicator As of March, 2003
\n--------------------------------------------------
\nNet Profit Rp 269.7 billion
\nGross Income Rp 1.9 trillion
\nLiabilities Rp 42.3 trillion
\nTotal Assets Rp 47.2 trillion
\nBook Value (per share) Rp 1,003
\n---------------------------------------------------
\nSource: Danamon's quarterly financial report<\/p>",
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