IBRA names JP Morgan for Danamon

JAKARTA: The Indonesian Bank Restructuring Agency (IBRA) has appointed consultant firm JP Morgan as the financial advisor for the planned sale of majority stake in Bank Danamon.

IBRA chairman Syafruddin Temenggung told reporters on Thursday that JP Morgan has been picked from the six contestants, both domestic and overseas, vying for the job.

Selecting the FA serves as a prelude for the agency before kickstarting the first stage of divesting up to 71 percent of stake in Bank Danamon, a process that hoped to be finalized by March next year.

IBRA will sell up to 20 percent stake in the bank through market offerings, to be followed by selling a controlling 51 percent stake through strategic sale mechanism.

IBRA currently owns 99.4 percent of stake in the bank, in return for some Rp 47 trillion worth of bail out funds injected to the bank since the crisis. -- JP