Bumiputera to complete stake sale next month
Bumiputera to complete stake sale next month
Urip Hudiono, The Jakarta Post, Jakarta
The sale of a majority 58.41 percent stake in Bank Bumiputera
is expected to be completed in May, according to a senior officer
of the mid-sized bank.
"According to the divestment plan schedule, our new investor
will hopefully be determined in May," marketing director Toto
Moeljono said on Tuesday on the sidelines of a launching ceremony
for the company's latest customer appreciation program.
Toto explained that there were three investors interested in
acquiring the bank. They include Bank Panin, insurance company
AJB Bumiputera 1912 and Malaysian financial holding group
International Commercial Bank (ICB).
The majority stake on offer consists of shares owned by three
subsidiary companies of state-owned investment firm PT Danareksa:
PT Reksasentosa Dinamika, PT Reksatama Dinamika and PT Cipta
Usaha Citra Dana.
Toto further said that Bank Bumiputera would also press ahead
with its two principal strategic plans for this year: the issuing
of asset-backed securities worth Rp 1 trillion (US$117.65
million) and of subordinated bonds worth Rp 200 billion.
The asset-backed securities, he explained, were expected to
raise cash to support the bank's lending operations, while
proceeds from the bonds would increase the bank's capital
adequacy ratio to 12 percent from the current 9 percent.
"The plans will hopefully start to be rolled out in June as
scheduled," he said.
Toto, however, said that even though the plans had been
approved by the bank's shareholders meeting earlier this year,
the bank would still have to heed the views of its new majority
investor.
"If our new investor requests another meeting to discuss and
approve the plans once again, then we will hold such a meeting,"
he said.
Asset-backed securities are bonds that are based on an
underlying pool of assets. A special purpose trust or instrument
is set up and takes title to the assets, while cash flows are
passed through to investors. The type of assets that can be used
under such schemes range from residential mortgages to credit
card receivables.
It is a relatively new kind of debt instrument in Indonesia.
In fact, Bank Bumiputera will be the first bank to launch such
securities here.