IBRA to sell Lippo, Permata in January
IBRA to sell Lippo, Permata in January
The Jakarta Post, Jakarta
The Indonesian Bank Restructuring Agency (IBRA) said on Tuesday
it would divest its majority stakes in Bank Lippo and Bank
Permata in January, only one month before its mandate expires.
"The process of selling the stakes in the two banks will start
later this month," IBRA chairman Syafruddin Temenggung said.
The government, via IBRA, currently holds 54.9 percent and
91.3 percent stake in Lippo and Permata respectively.
Details of the sell-off were not available.
As confirmed during a Cabinet meeting on Monday, the life of
the agency will not be extended. After serving its five-year
mandate, IBRA will be wound up by Feb. 27 next year.
Consequently, the agency now has to press ahead with the sale
of its remaining assets before it is shut down so as to avoid a
possible backlash for failing to fulfill its mandated tasks.
The agency has so far this year collected Rp 17 trillion in
proceeds, as compared to the Rp 26 trillion targeted for the full
year. It has raked in a total of Rp 140 trillion from its assets
sales since it was established in 1998.
IBRA was given the task of cleaning up the mess resulting from
the financial crisis and nurture the troubled banks back to
financial health.
Last month, IBRA had to postpone the sale of a 52 percent
stake in the publicly listed Bank Lippo as the prices offered by
the potential buyers were deemed too low.
It said that the postponement was unavoidable as the prices
submitted by the three shortlisted consortia were below the re-
bid price range of between Rp 384 and Rp 591 that had been
determined earlier by the agency.
Given this price range, the proceeds from the sale of Lippo
should have been more than Rp 1 trillion.
The re-bid price range has been set by IBRA upon learning that
all consortia had submitted preliminary bids prices that were
lower than the floor price of Rp 591 per share.
Other stakeholders in Lippo are the investing public (35.5
percent) and Lippo E-Net (9.6 percent), which represents Lippo's
former controlling shareholder -- the Riyadi family.
Permata is a merger of five banks -- Bank Universal, Bank
Bali, Bank Patriot, Bank Artamedia and Bank Prima Express.
Boasting total assets of Rp 29 trillion, it is among the
country's top ten banks.
Selling Lippo and Permata is the agency's next major task
before its closure having already sold in the past two years
majority stakes in Bank Central Asia (BCA), Bank Niaga, Bank
Danamon and Bank Internasional Indonesia (BII).