Fubon, HSBC bid for Danamon

Fubon, HSBC bid for Danamon

SINGAPORE: International and regional financial institutions, including Taiwan's Fubon Financial and HSBC, are among the leading bidders for Indonesia's Bank Danamon, a Singapore newspaper said Wednesday.

The Indonesian Bank Restructuring Agency (IBRA), set up in the aftermath of the 1997 financial crisis to salvage the country's battered banking system, is currently seeking a buyer for Bank Danamon, in which it holds a majority stake.

Fubon, one of Taiwan's largest financial services groups, has emerged as a leading contender for Bank Danamon, Indonesia's fifth largest bank, sources told The Business Times daily.

With a market capitalization of US$6.5 billion, and with Citibank as a shareholder, Fubon could provide stiff competition to the other bidders, including the Singapore government's Temasek Holdings.

Seventeen investors are considered likely to make preliminary bids with the 51 percent stake sale to be wound up by late April.