BNI seeks best arrangement in its takeover plan of BTN

JAKARTA (JP): Bank Negara Indonesia (BNI) is still studying the best financial arrangement in its takeover of Bank Tabungan Negara (BTN), BNI president Widigdo Sukarman said yesterday.

Widigdo said BNI had several financial options to finance the takeover of state-owned BTN, such as issuing rights shares or through a share swap.

"We are still studying the value of the acquisition. We haven't decided on the best way to acquire BTN yet," he said.

He said the acquisition would take time because the government intended to maintain BTN's existence after the takeover. In addition, BNI, as a publicly listed bank, had to seek shareholders' approval before pursuing the takeover.

"After the acquisition, BTN will continue to function, including serving as a financial source for low-cost housing," Widigdo said.

Widigdo said BNI, the only state-owned bank listed on the Jakarta and Surabaya stock exchanges, was still preparing an extraordinary shareholders meeting to seek minority shareholders' approval to carry out the acquisition.

He said he was optimistic the shareholders would approve the plan.

As of June 1997, BNI's assets totaled Rp 37.99 trillion and BTN's assets were Rp 13.71 trillion.

Minister of Finance Mar'ie Muhammad announced earlier this month that the government would merge Bank Pembangunan Indonesia, Bank Bumi Daya, Bank Dagang Negara and Bank Ekspor Impor Indonesia into a single bank.

Mar'ie said BTN, which focused on providing home loans, would become a subsidiary of BNI.

Another state bank, Bank Rakyat Indonesia, which provided loans to farmers and small companies, would remain independent, he said.

The merger and acquisition process should be completed by July this year.

Widigdo, chairman of the association of state-owned banks, said there would be no change in the board of directors of the two banks after the acquisition.

He said the acquisition was different from a merger, because under an acquisition the acquired company would be allowed to keep his identity.

"The acquisition should not shake up the operations the banks," he said. (09/gis)