Tue, 10 Jun 2003

Danamon sale wraps up in June

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) plans to wrap up the sale of the publicly listed Bank Danamon to Asia Financial Indonesia (AFI) by mid-June with the payment of US$350 million from the consortium.

IBRA deputy chairman for bank restructuring I Nyoman Sender said on Monday that the fit and proper test by Bank Indonesia was complete, so the transaction for the Bank Danamon takeover could be completed by June 16.

He said that the consortium had paid $15 million in advance for the purchase of the majority of shares in Bank Danamon.

Early last month, AFI, a consortium of Temasek Holdings Pte. Ltd. and Deutsche Bank acquired 51 percent of Bank Lippo at Rp 1,202 per share. The sale could generate about Rp 3 trillion for government coffers.

The agency expects to raise a total of $500 million from Danamon shares. IBRA also planned to immediately sell another 20 percent of the bank's shares on the stock market.

Sender said that currently IBRA was selecting its candidates for the bank's new board of directors and board of commissioners.

"The Bank Danamon takeover will be wrapped up with an extraordinary shareholders meeting," he said.