IBRA likely to announce BCA winner in two weeks
IBRA likely to announce BCA winner in two weeks
The Jakarta Post, Jakarta
The Indonesian Bank Restructuring Agency (IBRA) could announce
the winning bidder for a 51 percent stake in Bank Central Asia
(BCA) in as soon as two weeks, according to the government on
Friday.
State Minister for State Enterprises Laksamana Sukardi was
quoted as saying by Reuters that in about two weeks IBRA would
likely announce the winner.
"(IBRA) is still waiting for BI (to finish the screening
process on the bidders)," Laksamana said.
In late January, IBRA received four final bids for BCA but has
been unable to process them, as bidders must first pass Bank
Indonesia's screening process.
Bank Indonesia said earlier it expected to finalize its fit
and proper test on the final BCA bidders by the end of next week.
Afterwards, bidders must undergo IBRA's two-stage evaluation
process -- passing the fit and proper test is part of the first
stage.
The second stage would take bidders head to head in competing
for the best price, reputation and easiest terms and conditions.
IBRA has instituted a 50-point weighting for the price
offering, 25 points for bidders' terms and conditions, 20 points
for reputation, and five points on bidders' strategy for the
future of BCA.
Of the four final bidders, two have emerged as the most
competitive bidders.
They are the British-based Standard Chartered Bank Plc and the
U.S. investment firm Farallon Capital Management.
Competition among the two is heating up as both publicly
claimed that they had made the best offer to IBRA.
StanChart has been rumored to be in the government's favor due
to its strong reputation. But also to make up for StanChart
dropping out from an earlier deal to acquire Bank Bali when a
political-linked scandal erupted at the bank.
Farallon however may still be able to snatch the bank as it is
said to be offering a better combination of price and terms and
conditions than StanChart does.
Laksamana brushed aside a possible re-tender over speculation
that Farallon and StanChart bids had come too close in pricing.
He said the prices submitted were final.
IBRA will sell BCA through a two-step sale process, with only
a 30 percent stake offered in the first step. The winning bidder
can purchase the other 21 percent through an option.
Closing the deal would mark the end of a two-year long effort
of returning BCA to private hands. IBRA took over BCA from the
Salim Group after mismanagement in the bank led to the misuse of
some US$5 billion in state liquidity loans.