IBRA to sell more BCA shares

IBRA to sell more BCA shares

The Indonesian Bank Restructuring Agency (IBRA) said Thursday it hoped to sell a further 13.5 percent stake in Bank Central Asia next year.

IBRA - set up after the 1997-98 Asian financial crisis to clear up the local banking sector collapse - took over BCA from the Salim Group as part of its massive bailout of the financial system.

Earlier this year, the agency sold a 51 percent stake in BCA to U.S. investment firm Farallon Capital for just over US$500 million.

Next year the agency plans to offload its remaining 6.5 percent stake in BCA, IBRA's chairman Syafruddin Temenggung told reporters. The Salim Group will have to sell the 7 percent stake it still holds in BCA.

IBRA has said Salim Group - once the nation's largest conglomerate but now the biggest debtor to the state - must sell its remaining stake.

Farallon Capital has already stated its interest to buy IBRA's remaining stake, according to the agency.

The remainder of BCA shares are held by the public.

BCA has the largest retail bank network in Indonesia, and is viewed by analysts as one of the banking stocks most likely to outperform the local stock market. -- Dow Jones