CDC to raise stake in Tamara

JAKARTA (JP): Publicly listed Tamara Bank announced yesterday that its Taiwanese shareholder China Development Corp (CDC) has agreed to increase its stake in the bank up to the maximum allowed percentage.

The bank said CDC's plan to increase its shares in Tamara Bank, which would add its capital to Rp 1 trillion (US$100 million), was aimed at strengthening Tamara's capital structure.

The move is also aimed at fulfilling the government's program in creating stronger paid-up capital for Indonesian banks, the bank said.

According to the bank, the plan will be further discussed in the beginning of February and the whole agreement process is expected to be completed by the middle of May.

CDC, which has been a shareholder in Tamara Bank since 1995, currently controls 10 percent of shares in the bank. CDC is a major investment company in Taiwan, with approximately $2 billion in capital. (gis)