Malaysia's CAHB enters Niaga management

The Jakarta Post, Jakarta

Bank Niaga reshuffled on Monday its board of directors and commissioners to reflect the bank's new ownership composition after Malaysia's Commerce Asset-Holding Bhd. (CAHB) purchased a 51 percent stake in the bank.

The bank's extraordinary shareholders' meeting appointed CAHB director Rozali bin Mohamed Ali to head Niaga's seven-strong board of commissioners, while Peter B. Stok was reappointed president director.

Other commissioners are Gunarni Soeworo, Mohammad Syahrial, Sigid Moerkardjono, Datuk Hamzah bin Bakar, Encik Mohd. Salleh bin Mahmud and Dato Halim bin Muhamat, with the last three being CAHB's representatives.

Hashemi Albakri bin Abu Bakar, Andi Mohammad Hatta, Tay Un Soo, C. Heru Budiargo, Daniel James Rompas, and Catherinawati hadiman make up the board of directors.

Hashemi Albakri and Tay Un Soo represent CAHB.

CAHB purchased the majority stake in Bank Niaga from the Indonesian Bank Restructuring Agency (IBRA). After the deal, IBRA's stake in Bank Niaga fell to 46 percent from 97 percent.

Monday's reshuffle was part of the sales agreement in which CAHB demanded it be given four seats in Bank Niaga's new board of commissioners, with IBRA taking the remaining seats.

Disagreement over CAHB's number of representatives was one of several issues over which both sides entered into lengthy talks.

The reshuffle also came three days after CAHB made a one-time payment of Rp 1.01 trillion (US$114 million) to IBRA for the 51 percent stake in the bank.

Bank Niaga is the country's ninth largest bank with total assets worth more than $2.7 billion as of June 30 this year. CAHB owns Malaysia's second largest bank.

Following the reshuffle, Bank Niaga president Stok said the bank planned to raise its loan portfolio to around 20 percent to Rp 12 trillion from this year's target of Rp 10.5 trillion.

Of the targeted amount, around Rp 10.2 trillion has been disbursed by the third quarter of this year.