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Tue, 29 Jul 2003

JP/IBRA sells 17.5% Bank Danamon stake

IBRA sells 17.5% Bank Danamon stake

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) said on Monday it had sold a 17.5 percent stake in publicly listed Bank Danamon at Rp 1,325 per share, and would press ahead with the planned divestment of other banks.

IBRA chairman Syafruddin Temenggung said the divestment of Bank Danamon was completed late last week via a block sale mechanism.

He said most of the shares (some 891 million) went to local investors (55 percent), while the remainder were bought by foreign investors including the current controlling shareholder, a consortium called Asia Financial Indonesia.

He said the sale was oversubscribed as the agency received offers for up to 4.4 billion shares during book building on Thursday and Friday.

Last month, the agency sold a 2.45 percent stake in Bank Danamon via the stock market. Proceeds from the sale of the combined 20 percent stake totaled Rp 1.29 trillion.

The Asia Financial Indonesia consortium is owned by the Singapore government's investment arm Temasek Holdings and Deutsche Bank, which acquired a 51 percent stake in Danamon in May at Rp 1,202 per share.

IBRA now owns a 28.35 percent stake in Danamon.

IBRA took over a number of ailing banks in the wake of the late 1990s financial crisis. The agency is mandated to return the banks to health and sell government ownership in them to raise funds to help finance the state budget deficit, which this year is expected to reach Rp 34.4 trillion, or about 1.8 percent of gross domestic product.

Elsewhere, Syafruddin said the agency would start the block sale of a 19 percent stake in Bank Niaga this week. The agency still hold a 45.1 percent stake in the publicly listed bank after it sold a controlling 51 percent stake to Malaysia's Commerce Asset Holdings Bhd. last year.

He said the agency would allocate a greater portion of the 19 percent stake for local investors.

Syafruddin also said the planned sale of a 52 percent stake in the publicly listed Bank Lippo was on track, and was expected to be completed in October.