IBRA seeks higher price for Bank Niaga
IBRA seeks higher price for Bank Niaga
The Jakarta Post, Jakarta
The Indonesian Bank Restructuring Agency (IBRA) said on
Thursday it would ask Malaysia's Commerce Asset Holdings Bhd to
raise its bid for a 51 percent stake in Bank Niaga to Rp 30
(about 0.3 US cents) per share.
"We will ask for twice the price of its book value," said
IBRA's Bank Restructuring Unit deputy chairman I Nyoman Sender
after meeting with the House of Representatives' Commission V for
industry and trade affairs.
The book value of Bank Niaga's shares are at Rp 15. Nyoman
said he would meet Commerce representatives either Thursday or
Friday to discuss the new price scheme.
"We might rearrange their sales and purchase agreement," he
added when asked what IBRA had to offer should Commerce agree to
the doubling of the price.
The Malaysian investor is reportedly the only bidder left out
of four. The other three were Indonesia's Panin Bank, Bank
Victoria and the Batavia Fund. Australia & New Zealand Banking
Group owns a minority stake in Panin Bank. IBRA will announce its
final decision next month.
Commerce has offered a price of Rp 26.5 a share, which State
Minister for State Enterprises Laksamana Sukardi earlier called a
"realistic" offer.
The offer might have secured Commerce the deal, however the
House instructed the government to negotiate for a higher price.
It marked the second time that legislators blocked attempts to
sell shares in Bank Niaga, after IBRA canceled the first auction
in June.
The government owns a 97 percent stake in Bank Niaga since
injecting the bank with recapitalization bonds to keep it afloat
during the 1997 economic crisis.
IBRA is selling off assets it acquired from ailing banks in
exchange for the recapitalization bonds.
The sale of Bank Niaga is also mandated under the economic
reforms program of the International Monetary Fund (IMF), which
requires IBRA to finalize the sale this year.
Proceeds of the sale will help finance this year's state
budget deficit, estimated to be at Rp 42 trillion.