Maybank will buy 20% of BankNusa, executive says
Maybank will buy 20% of BankNusa, executive says
JAKARTA (JP): Publicly listed Malaysian bank Malayan Banking
Berhad (Maybank) will sign an agreement Monday to buy Bank Nusa
Internasional's convertible bonds worth Rp 95 billion (US$26.4
million).
BankNusa's president B.S. Kusmuljono said yesterday that with
the purchase of the bonds, the Malaysian bank had an option to
own up to 20 percent of BankNusa, a subsidiary of the Bakrie
Group.
"The Malaysian bank will be allowed to convert the bonds into
BankNusa shares after the bank launches its initial public
offering (IPO) next year," he said.
Kusmuljono said BankNusa would sell between 30 percent and 40
percent of its enlarged shares during the IPO to strengthen its
capital structure.
He said 20 percent of the new shares would be allotted to
Maybank so that after the IPO the Malaysian bank would own 20
percent of the bank's shares.
"After the IPO, the public will own between 10 percent and 20
percent of BankNusa while the Bakrie Finance Corporation will
hold the remainder," he said.
He said BankNusa's paid-up capital was expected to increase to
Rp 200 billion in 2001, well above the minimum requirement of Rp
150 billion set by the central bank.
"The alliance is one of BankNusa's strategies to diversify its
market in the retail and consumer banking sector," he said adding
that Maybank would transfer its technology and experience in the
retail banking sector.
"Maybank's technology and products will strengthen BankNusa's
retail and consumer banking sector," he said.
He said the entry of Maybank would not change BankNusa's board
of commissioners and directors, but the Malaysian bank was
allowed to use its staff as management consultants.
"The change to the board will be made after the IPO," he said.
BankNusa, established in 1989, was expected to book total
assets of Rp 2 trillion and a pretax profit of Rp 32 billion by
the end of 1997.
The bank's total assets rose by 23 percent to Rp 1.28 trillion
in 1996, while its lending grew by 25 percent from Rp 628 billion
to Rp 784 billion.
It has 24 branch offices in seven cities, and plans to
increase its branches to 100 offices by the end of 2000.
It also plans to open 30 to 40 branch offices next year.
In 1994, BankNusa, in cooperation with Maybank, established a
joint-venture bank called MaybankNusa.
It was Indonesia's first joint-venture bank involving
Indonesian and Malaysian companies, with BankNusa owning 30
percent of shares and Maybank 70 percent.
The joint-venture bank, with paid-up capital of Rp 130
billion, booked total assets of Rp 425 billion as of September.
In the first three quarters of this year, the bank's profit
reached Rp 16 billion.
Maybank, is a leading bank in Malaysia. Its total assets
reached about Rp 83 trillion in 1996, with paid-up capital of Rp
7 trillion.
It currently has 480 branches and representative offices in 13
countries. (08)