Investors remain keen on Permata: PPA
The Jakarta Post/Jakarta
Undeterred by the latest bomb attack, investors vying to acquire a majority stake in Bank Permata remain committed to the sale, and are even asking the government to increase the size of the stake being sold, the Asset Management Company (PPA) said on Friday.
PPA chairman Mohammad Syahrial told the press that the shortlisted five groups of investors had asked the government to sell up to 71 percent of the shares in Permata, as compared to the 51 percent stake mooted in the current divestment plan.
"They asked if they can buy more when we contacted them earlier to confirm whether they were still committed to the process after the blast yesterday (Thursday)," Syahrial said
He was referring to a bomb explosion outside the Australian Embassy, which has killed at least nine people, and injured over 180. The terror attack adds to the risk of investing in this country.
The government, which via the PPA controls 97.17 percent of the shares in the publicly listed Permata, plans to sell a 51 percent stake in the country's seventh largest bank to strategic investors later this year, and another 20 percent to investors in the stock market next year. Proceeds from the sale will be used to help finance the state budget deficit.
Five bidders have been shortlisted, including the consortium made up of Malaysian-based Malayan Banking Bhd. (Maybank) and state pension fund operator PT Jamsostek; Singapore's United Overseas Bank (UOB); the consortium made up of Bank Panin and Australia and New Zealand-based ANZ Ltd.; the consortium of Britain's Standard Chartered Plc. and Astra International; and Malaysia's Commerce Aset-Holding Bhd., which has teamed up with Bank Bumiputera.
Syahrial said the agency would consider the request for a higher stake, with the price being offered by the five consortia likely to be a major consideration.
The five investors submitted bids for the 51 percent Permata stake of between 1.8 and 2.39 times the bank's book value. Syahrial has said that the government expected the consortia to submit higher bids of more than 2.39 times book value when they submit their final bids.
At 2.39 times book value, this would price the Permata stake at Rp 248 per share.
Syahrial was convinced that the bombing incident would not be used as a reason by the bidders to reduce their bids.
Permata, which was set up in 2002 from the merger of five banks -- including Bank Bali, Bank Universal, Bank Arthamedia, Bank Prima Express and Bank Patriot -- is currently a leading player in the consumer finance field.