Sat, 15 May 2004

Danareksa to sell Bumiputera shares

Shareholders of mid-size Bank Bumiputera approved on Friday a plan by state investment company PT Danareksa to sell its entire controlling stake in the bank to strategic investors.

Bumiputera commissioner Effy Firmansyah, a former director of Danareksa, said the bank's shareholders had approved Danareksa selling its entire 58.41 percent stake.

Danareksa opened a final bid on Friday for three interested investors, with the winner expected to be announced on Monday, Effy said.

The three companies bidding for the shares are Bank Panin consortium, Switzerland-based ICB Financial Group Holding Ltd. and local insurance firm AJB Bumiputera.

Danareksa shares in Bumiputera are managed by its three subsidiaries -- PT Cipta Usaha Citra Dana, PT Reksasentosa Dinamika and PT Reksatama Dinamika.

Bumiputera booked a net profit of Rp 6.42 billion (about US$701,123) in the first quarter of this year, up 20 percent from Rp 5.34 billion in the same period last year. The company's revenue rose to Rp 54.29 billion from Rp 53.9 billion.

The government plans to sell Danareksa at the end of this year. How it will be sold off is still undecided. -- JP