Canadian bank buys Bank Arya shares

JAKARTA (JP): Nova Scotia Bank of Canada concluded yesterday the purchase of a 35 percent stake in publicly listed Bank Arya, part of the Ongko Group.

Bank Arya's president, Safrullah Hadi Saleh, said here yesterday the Canadian bank bought 21 percent of the total bank's shares from PT Dutamas Sarana Harapan, one of the bank's founders.

He said the remaining 14 percent was bought from the investing public through the Jakarta Stock Exchange.

The Canadian bank bought the 140 million shares for Rp 975 (33.50 U.S. cents) each, bringing the total transaction value to Ro 136.5 billion (US$45.5 million), he said.

Safrullah said that Bank Arya's status would not be changed into a foreign joint venture bank even though a significant amount of its shares were already controlled by a foreign bank.

"Nova Scotia might even buy up to 49 percent shares in Arya through the capital market. But Arya will remain a national bank, not a joint venture bank," he said after signing the acquisition deal.

Arya, previously called Bank Pertiwi, was taken over four years ago by the Ongko Group from PT Dutamas Sarana Harapan. Ongko then changed the bank to its current name.

As of August 1997, Arya's total assets reached Rp 1.16 trillion as compared to Rp 1.1 trillion at the end of 1996. The bank's profit rose to Rp 19.92 billion as of August 1997 from Rp 8.83 billion at the end of 1996.

Saleh said his bank currently had 14 branches in Indonesia and would open another 10 by the end of the year.

Arya's commissioner, Irjanto Ongko, said the bank targeted customers who sought special and high quality service.

Nova Scotia's chairman and chief executive officer, Peter C. Godsoe, said he was optimistic and confident of the alliance with Bank Arya.

"We have the same vision in customer oriented services by providing a personal touch, not just high technology and management."

"Indonesia is one of the most important economies in the far east and the fourth largest nation in the world (in terms of population). We are fortunate to be here," he said, expecting Arya to be one of the "big five" in Indonesia.

By the end of 1996, the publicly listed Nova Scotia's profit reached C$950 million ($633.3 million), he added. The profit in the first half of this year was C$600 million.

He said the 160-year Nova Scotia had several joint venture firms in the Philippines, Thailand, Singapore, Malaysia, Taiwan, China and India. (icn)