Bakrie to acquire firms

JAKARTA (JP): The publicly-listed finance division of Bakrie Group, Bakrie Finance Corporation, plans to buy majority share holdings in three finance companies: PT Dinaro Modal Finance, PT Asemka Pratama Leasing and PT Asuransi Jiwa Centris.

Bakrie Finance announced Tuesday it planned to acquire a 95 percent stake (4,750 shares) in Dinaro Modal, a 75 percent stake (7,500 shares) in Asemka Pratama and a 70.9 percent stake (5,031 shares) in Asuransi Jiwa Centris.

The acquisitions are expected to be approved at the company's extraordinary meeting early next month.

Some of Bakrie Finance's assets and its multi-finance division will be merged into Dinaro Modal, according to the announcement.

The transfer of assets and its main business services must comply with finance ministry regulations regarding restrictions on non-bank financial institutions' equity going to other firms.

According to the regulation, a non-bank financial institution's equity invested in another company may not exceed 25 percent of the institution's paid-up capital. And the institution's total equity investments should not exceed 40 percent of its paid-up capital.

If its plans go ahead, Bakrie Finance would end up operating solely as a holding company.

Bakrie Finance said it would offer to buy Asuransi Jiwa Centris shares for between Rp 777 and Rp 1,583 (approximately 65 U.S. cents) each.

Bakrie Finance did not disclose the price of its bid for Dinaro and Asemka shares. (hen)