Bank Indonesia sells half its stake in Ficorinvest Bank
Bank Indonesia sells half its stake in Ficorinvest Bank
JAKARTA (JP): The central bank, Bank Indonesia, plans to
divest half of its 71 percent stake in the publicly-listed
Ficorinvest Bank by selling its rights shares to other parties.
"It is in line with the central bank's policy to gradually
reduce its ownership in banks (formerly non-banking financial
institutions) to avoid conflicts of interest," a director of Bank
Indonesia, Haryono, said yesterday.
"So, it's not a sudden decision. We just have to be careful in
enforcing the plan because Ficorinvest is now a public bank," he
said.
"We have considered that the right time to divest our shares
is when Ficorinvest issues rights shares later this month," he
added.
Ficorinvest's president, Supari Dhirjoprawiro, said that
yesterday the shareholders approved a proposal from the
management to issue 40 million new shares at Rp 1,900 (81.U.S.
cents) each through a limited offering to raise a total fund of
Rp 76 billion.
"The rights issue will double the number of Ficorinvest's
shares to 80 million. By selling our rights shares to other
parties, we will own only 35 percent of Fircorinvest's total
shares after the rights issue," Haryono said.
Ficorinvest is currently 71 percent owned by Bank Indonesia, 4
percent by Bina Usaha Indonesia and 25 percent by the investing
public.
Haryono declined to mention the potential buyers of Bank
Indonesia's rights but he said that the new investors will be
selected and approved by the central bank.
"We don't want new investors with bad track records or those
who have a mission at odds with Ficorinvest's current mission,"
Haryono added.
Ficorinvest's credits are mainly in three sectors, including
trade (which accounts for 26 percent of the bank's portfolio last
year), manufacturing (19.3 percent) and services (12.7 percent).
The way Bank Indonesia plans to divest its shares, however, is
questionable because the transaction will bring in new investors
who will hold up to 35 percent of Ficorinvest's total shares.
A capital market regulation requires any parties interested to
buy 25 percent shares of a public company, or at least 20 percent
but with an intention to control the company's management, to
follow tender offer procedures.
"It's possible that two different investors will purchase the
shares offered with a maximum ownership of 16 percent and 19
percent of the total shares," Haryono contended.
Supari refused to comment on Bank Indonesia's plan.
He only said 70 percent of the rights issue proceeds will be
used to finance Ficorinvest's credits and the remaining 30
percent to pay debts.
He said that Ficorinvest's net profits increased by 61 percent
to Rp 11.6 billion last year. Total assets rose 37.5 percent to
Rp 1.1 trillion as of last December, while total credits grew by
50 percent to Rp 875 billion.
"The profit increase was a result of higher revenues from
interest and fees as well as lower operating costs," Supari said.
"Our interest revenues last year reached Rp 127.3 billion, a 94.8
percent higher than 1994."
At yesterday's meeting, the shareholders also approved the
management's proposal to pay dividends of Rp 125 per share,
totaling Rp 5 billion or 43 percent of net profits. (alo)