Bhakti's shares in Ficorinvest to rise

JAKARTA (JP): PT Bhakti Investama, a local securities company, will increase its share ownership in Ficorinvest Bank (First Indonesian Finance and Investment Corporation bank) to 26 percent.

Company president Hary Tanoesoedibyo said his firm, which at present owns 19.41 percent stake in the bank, would buy another 10.54 million shares or 6.59 percent to increase its share ownership to 26 percent.

He said the 10.54 million shares would be acquired through a tender offer, adding that the proposed price would be Rp 2,050 each.

The increase in the stake would prop up Bhakti Investama's profits, he said.

"Twenty-six percent of Ficorinvest Bank's profit will be included in the income statement of Bhakti Investama this year," Bisnis Indonesia quoted him as saying.

Hary said Bhakti Investama expected to post net profit of Rp 34 billion and revenue of Rp 50 billion this year.

Ficorinvest president's Supari Dhirdjoprawiro said that as of July 1997, the bank was 35.42 percent owned by Bank Indonesia, 19 percent by Bank Indonesia Pension Fund, 16.42 percent by Bank Indonesia Employees Cooperatives, 4.16 percent by PT Bina Usaha Indonesia and the remaining 25 percent by the investing public.

Ficorinvest Bank was founded in 1974 as a nonbanking financial institution by PT Bina Usaha Indonesia and nine domestic and foreign financial institutions.

In 1993, Ficorinvest changed its status as a commercial bank with a license to operate as a foreign exchange bank.

But prior to the change, Ficorinvest suffered from losses due to huge nonperforming loans.

Bank Indonesia, the central bank, then appointed Supari Dhirdjoprawiro as president to improve the bank's performance.

Since then, the bank has increased its net profit. In 1995, the bank recorded total net profit of Rp 11.98 billion. It rose to Rp 17.2 billion in 1996.

The bank expected to record net profit of about Rp 25 billion this year. (aly)