IBRA to name Danamon investors shortlist

IBRA to name Danamon investors shortlist

Dow Jones, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) said it planned to announce on Thursday the shortlist of investors who have expressed an interest in bidding for a 51 percent stake in Bank Danamon.

"We will meet with the investors prior to the announcement day (Thursday)," IBRA Chairman Syafruddin Temenggung told reporters.

He confirmed there are five consortia that have passed the preliminary steps. The five are Singapore's Temasek Holdings and Deutsche Bank, HSBC, and local Bank Artha Graha and cigarette maker PT Gudang Garam.

Bhakti Investama, a local investment bank, is involved with two other bids, although the names of these are unknown and it's not clear if they will be on Thursday's shortlist.

Temenggung said there are some requirements that IBRA will discuss with the five investors on how they will acquire Bank Danamon.

"For instance, they will have to explain to me where they'll get the money from to buy the bank," he added.

He said the investors must also express a commitment to develop Bank Danamon and they must act on behalf of their own company.

"We (IBRA) are not going to accept if they are acting as special purpose vehicles or nominees," Temenggung said.

He expects investors to offer a "good price" for Bank Danamon shares.

He didn't elaborate.