IBRA sells 20% more of Bank Niaga

IBRA sells 20% more of Bank Niaga

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) said on
Tuesday it had sold a 20 percent stake in PT Bank Niaga through
the stock market for Rp 441.8 billion (US$52 million).

IBRA's chairman Syafruddin Temenggung said local investors
bought 88 percent of the stake, while the remaining 18 percent
were purchased by foreign investors.

"This is in line with the market placement's purpose of
prioritizing local investors," Syafruddin said.

In November last year, IBRA sold a 51 percent stake in the
bank to Malaysia's Commerce Asset Holding Bhd. for Rp 1.057
trillion.

Syafruddin said IBRA sold the 20 percent stake for an average
of Rp 28.2 per share, higher than the price of Rp 26.5 per share
paid by Commerce Asset.

It is however lower than Niaga's trading price of Rp 35 as of
Tuesday.

"The share offer was 3.2 times oversubscribed," he said.

IBRA, a government agency set up to resolve the 1997-1998
banking crisis, is selling assets and local banks to raise funds
to cover the budget deficit which is estimated at Rp 35.2
trillion this year. The government took control of Niaga in 1999
after injecting Rp 9.3 trillion worth of bonds to help it survive
the economic crisis.

IBRA is Indonesia's 10th largest lender, while Commerce Asset
is Malaysia's second largest bank.

Niaga reported a net profit of Rp 212.6 billion in the first
half of the year, compared with Rp 56.4 billion a year ago as it
gained from higher interest income.