Indovina Bank up for sale

Indovina Bank up for sale

HANOI (Dow Jones): Indovina bank, a joint venture between
Indonesia's Bank Dagang Nasional Indonesia (BDNI) and state-owned
Industrial & Commercial Bank of Vietnam (Incom Bank) is up for
sale, a source at Indovina told Dow Jones Newswires.

He said that a number of companies have expressed interest in
Indovina whose future has been the subject of much speculation
ever since its Indonesian parent was shut down Aug. 21 by the
government after the state injected huge liquidity into the bank
earlier this year amid massive bank runs.

Officials at the Indonesian Bank Restructuring Agency, set up
by the central bank to recover government credit, couldn't
confirm whether the agency was negotiating to sell BDNI's stake
in Indovina. The former owners of BDNI - once one of Indonesia's
largest banks - reached agreement in principle with the
government in September to repay the US$2.5 billion it owes the
state in a mixture of assets and cash.

This has led to speculation regarding the sale of its assets,
both inside and outside Indonesia.