Vickers Ballas boosts stake in RI brokerage<\/p>\n
SINGAPORE (Bloomberg): Vickers Ballas Holdings Ltd, a
\nSingapore stock brokerage, is increasing its stake in Indonesia,
\na market that much of the international brokerage industry has
\nturned its back on.<\/p>\n
One of Singapore's largest locally owned brokerages, Vickers
\nBallas is paying 6.6 billion rupiah (US$554,000) to boost its
\nstake in PT Vickers Ballas Tamara to 75 percent from 50 percent.<\/p>\n
The transaction is also the latest link in a chain of
\nexpansion moves by Vickers Ballas in Southeast Asia.<\/p>\n
While Indonesia has not yet solved its economic problems --
\nJakarta's benchmark index fell 8.9 percent Tuesday on concern
\nabout possible foreign exchange controls -- Vickers Ballas
\nexecutives reckon the purchase makes sense beyond the daily
\nturmoil of Indonesia's financial markets.<\/p>\n
\"We want to be a significant player in the countries we are
\nactive in, and this is part of that long-term strategy,\" said
\nDamien Lim, a senior vice president at Vickers Ballas Holdings.<\/p>\n
The Singapore brokerage bought the additional 25 percent of
\nVickers Ballas Tamara from PT Sukandamulia Prakasa, a privately
\nheld Indonesian group.<\/p>\n
PT Tamara Bank continues to own the remaining 25 percent of
\nthe brokerage. Vickers Ballas said it would pay for the increased
\nstake from dividends from its existing shares in the brokerage.<\/p>\n
Since the middle of 1997, East Asia's economic crisis has
\ncaused the rupiah to plunge 73 percent against the U.S. dollar,
\ninterest rates to soar, and the Indonesian economy to fall into
\nrecession. The government expects the economy to contract by at
\nleast 15 percent this year.<\/p>\n
During the past year, foreign stock brokers have either cut
\ntheir staffs in Indonesia or left the country entirely as
\ninvestors have shied away from its volatile financial markets.<\/p>\n
\"Operationally, we are profitable in Indonesia,\" Lim said.
\n\"We have gained business from brokerages that have left the
\ncountry.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/vickers-ballas-boosts-stake-in-ri-brokerage-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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