IBRA gets three bids for Lippo

IBRA gets three bids for Lippo

Dow Jones, Jakarta

The Indonesian Bank Restructuring Agency said Wednesday it has received bids from three new consortia for a 52 percent stake in PT Bank Lippo.

Previous bids from the initial consortia groups were rejected by IBRA in October because the agency said they weren't credible and told them to get new partners if they wanted to take part again in the Bank Lippo sale.

IBRA's spokesman Rohan Hafas told reporters that the three new bidders are Peregrine Eurocapital Asia Ltd., Triton Advisory Pte. and Swissasia Global. All were part of the original consortia consisting of a number of international investors.

Many analysts also alleged that the bank's founder, the Riady family, was involved in the original bids to regain control of the bank.

The Riadys, a powerful business family, currently holds a 9.57 percent stake in Bank Lippo. It lost its majority holding after the government recapitalized the bank following the 1997-98 Asian financial crisis.

It remains unclear whether IBRA will accept the new bids submitted by the three investors.

Rohan only said that the agency is expected to make a decision later Wednesday or Thursday.

IBRA has targeted to complete the Bank Lippo sale by the end of the month.

IBRA, a government agency set up to clean up the banking sector after the Asian crisis, hopes to close down by the end of February, and is in the process of selling off its remaining assets.