Investors remain keen on Permata: PPA

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.