IBRA begins selling off Danamon

IBRA begins selling off Danamon

The Indonesian Bank Restructuring Agency (IBRA) started on
Friday selling Bank Danamon shares on the stock market, a move
which marked the first phase of the bank's divestment process.

Under the agreement with the House of Representatives, IBRA
will sell up to 20 percent of the stake in the bank on the stock
market first, before selling a controlling 51 percent stake to
strategic investors.

IBRA has said that the first stage was primarily aimed at
testing the market interests, as well as obtaining a benchmark
price for the subsequent sale of a majority stake to strategic
investors.

IBRA becomes the majority owner of the bank after bailing it
out in the wake of the late 1990s banking crisis. It now controls
99.4 percent stake in the bank in return for around Rp 47
trillion worth of the bail-out funds.

The public holds the rest. -- JP