IBRA to sell BCA shares through IPO
IBRA to sell BCA shares through IPO
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
will sell about 30 percent of the shares it holds in Bank Central
Asia (BCA) in an initial public offering (IPO) in February, an
official at the agency said.
The head of IBRA's asset management and investment team, Dasa
Sutanto, said on Friday a financial audit of the bank was still
being conducted and the agency would seek approval for the IPO
from the country's Capital Market Supervisory Agency in December.
Speaking to reporters during a break in a seminar, Dasa said
the due diligence report would be completed within a month.
IBRA has appointed Lehman Brothers, Merrill Lynch and local
securities firms PT Bahana Securities and PT Danareksa Securities
to oversee the IPO.
The agency initially planned to sell the BCA shares in
December, but had to delay the offering due to fallout caused by
the high-profile Bank Bali scandal.
IBRA, a unit of the finance ministry, took over BCA last year
after its owners, the Salim Group and a number of former
president Soeharto's children, failed to repay the bank's debts
to the government.
BCA, one of the country's largest private banks, has total
assets amounting to some Rp 84.4 trillion and operates some 767
branches throughout the country.
IBRA has yet to set the price for the shares, but the agency
has repeatedly said it is determined to maximize profits from the
sale.
The agency is raising funds by selling over Rp 600 trillion
worth of assets under its control to help finance the country's
bank restructuring program, which is estimated will cost some Rp
550 trillion.
In the current fiscal year ending in March 2000, the agency is
attempting to raise at least Rp 17 trillion. IBRA has so far
raised only some Rp 8.9 trillion of this amount.
The agency also plans to sell other assets under its control
in the near future, including around half of its 40 percent stake
in publicly listed auto giant PT Astra International, integrated
shrimp firm PT Dipasena and a plantation firm.
The agency also will sell its stakes in recapitalized private
banks. The government has recapitalized several major private
banks, with IBRA injecting some 80 percent of the required
recapitalization funding.
The agency expects the market will be more favorable for IPOs
following the election of a new government and improving
relations with the International Monetary Fund in the wake of the
publication of the PricewaterhouseCoopers audit of the Bank Bali
scandal. (rei)