Bank Duta to sell subsidiary

Bank Duta to sell subsidiary

JAKARTA (JP): The shareholders of publicly-listed Bank Duta
have endorsed the management's proposal to sell subsidiary PT
Graha Sarana Duta for the price of Rp 30 billion (US$13.06
million) to Koperasi Mitra Duta, a cooperative belonging to the
bank's employees.

Speaking after an extraordinary shareholders meeting here on
Tuesday, Bank Duta president Muchtar Mandala said the management
had decided to sell the subsidiary to comply with Decree No.
2597/Kep/Dir/1992 of Bank Indonesia, the central bank, which
prohibits a bank from conducting business in non-financial
sectors.

Graha Sarana Duta, which is 100-percent owned by Bank Duta, is
involved in a property development and management business.

Muchtar said that, since the transaction did not involve a
conflict of interest, the decision did not require the approval
of independent shareholders. Such approval is required by the
capital market regulations in circumstances of a conflict of
interest.

Muchtar said that neither Bank Duta's controlling shareholders
nor its management has shares in Koperasi Mitra Duta, nor are
they involved in the cooperative's management.

He added that the total proceeds of the transaction,
representing 11.4 percent of Bank Duta's total revenues in 1994,
will be used to strengthen Bank Duta's financial position.

He said that Graha Sarana posted losses of Rp 399 million in
1993 and Rp 688 million in 1994. However, during the first six
months of this year, it booked a net profit of Rp 4.55 billion.
Its total assets decreased from Rp 25.58 billion as of the end of
1994 to Rp 20.76 billion as of June. (08)