Thu, 05 Oct 2000

IBRA owns 98.23% of Bank Bali

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA), in its position as a standby buyer of the publicly listed Bank Bali's recent limited public offering, will own 98.23 percent of the bank's shares after existing majority shareholders did not exercise their rights.

Bank Bali said in a statement that the bank had raised about Rp 41 billion (about US$4.8 million) in fresh funds from the sales of its rights shares last month, far lower than the Rp 5.35 trillion needed to raise its capital to the minimum level set by the government.

Banking AG of Germany, which held a majority stake in Bank Bali on behalf of individual investors, was barred by the Indonesian capital watchdog from exercise its rights due to its refusal to disclose the names of the people it represented.

The bank said that PT Sari Jaya, which is owned by the Ramli family who founded the bank, also decided not to use the rights in the limited public offering.

The government will issue bonds in exchange for the bank's shares. (hen)