Bank Indonesia to sell its 13.11% stake in BPS
Bank Indonesia to sell its 13.11% stake in BPS
JAKARTA (JP): The central bank, Bank Indonesia, plans to sell
its 13.11 percent stake in publicly listed Bank Papan Sejahtera
(BPS).
BPS's president, Al Njoo, said yesterday that the central bank
had given BPS' other shareholders the option of buying its stake.
"The existing majority shareholders will proportionally
acquire BI's stake in BPS," he said.
"The divestment deal is expected to be made within the next
two weeks," he said after BPS's shareholders' meeting.
Njoo said the sale was in line with the central bank's
commitment to reducing its shares in commercial banks.
Bank Indonesia has a stake in several commercial banks but has
pledged to gradually divest them to avoid a conflict of interest
given its supervising role.
Njoo said that Bank of International Settlement (BIS) had
suggested that central banks worldwide divest their stakes in
other banks.
He said Bank Indonesia's BPS shares were worth about Rp 9
billion (US$3.75 million).
As of May 1997, shareholders that owned more than 5 percent of
BPS were PT Tunasmas Paduarta (19.80 percent); Bank Indonesia
(13.11 percent); Chase Manhattan of Singapore (9.39 percent);
Somers Nominees (Far East) Ltd ( 8.82 percent); SBC Warbung
Hongkong (nominees) Ltd (8.44 percent); PT Asuransi Jiwa Bersama
Bumiputera 1912 (6.80 percent); PT REI Sewindu (6.48 percent); PT
Asuransi Jiwasraya (5.69 percent) and the public (21.47 percent).
Al Njoo also said that BPS, which lends most to the housing
and property sectors, planned to launch five-year bonds worth Rp
300 billion in September this year.
He said the bonds would carry a fixed interest rate of about
15 percent.
He said Bahana Securities and Pentasena Securities would be
the managing underwriters of the bonds issuance.
"Proceeds from the bonds issuance will finance Bank Papan's
housing credit," he said after a shareholders' meeting yesterday.
He also said that BPS would launch Indonesia's first ever
mortgage-backed securities worth around $100 million through the
Jakarta Stock Exchange in September.
He said the mortgage-backed securities were to help the bank
minimize financial risks in the property sector.
He said the bank expected to post net profit of about Rp 10
billion in 1997, up 13 percent from Rp 8.8 billion in 1996.
He said BPS' profit dropped 6 percent to Rp 8.8 billion in
1996, from Rp 9.4 billion in 1995 because housing loan payments
were increasingly in arrears.
Al Njoo said BPS expected to book total assets of Rp 2
trillion in 1997, up from Rp 1.3 trillion as of December
1996. (09)