Nusamba banks' merger to pool assets of $1.7b
Nusamba banks' merger to pool assets of $1.7b
JAKARTA (JP): Four private banks under the Nusamba Group have
agreed to merge to create a new bank with combined assets worth
Rp 21.2 trillion (US$1.76 billion).
The banks -- Bank Duta, Bank Umum Nasional (BUN), Bank
Bukopin, and Bank Tugu -- signed the memorandum of understanding
for the merger Saturday.
The publicly listed Bank Duta president Muchtar Mandala said
the new bank was expected to be formed by the end of June.
"The process to merge has been smooth because of the matching
perception and the closed relations between the four banks' main
shareholders," Muchtar told reporters after the signing of the
merger agreement.
Muchtar was accompanied by the presidents of the publicly
listed BUN Leonard Tanubrata, Bukopin Indra Kesuma, and Bank Tugu
Ari Prabowo at the signing ceremony.
The consolidation of the four banks will create a new bank,
with equity amounting to Rp 1.39 trillion and a paid-up capital
of Rp 756.23 billion. It will have 300 branches and 300 Automatic
Teller Machines.
Nusamba Group, owned by President Soeharto's four foundations,
is headed by timber mogul Muhammad "Bob" Hasan, who is also the
chief commissioner of BUN, Bukopin and Bank Duta.
The four banks are the second group of private banks to have
formally agreed on a merger plan.
Bank International Indonesia and Bank Dagang Nasional
Indonesia, two of Indonesia's largest private banks, have agreed
to merge with Bank Tiara Asia, Bank Sahid Gajah Perkasa and Bank
Dewa Rutji, creating a bank with Rp 50 trillion in assets.
Other private banks have informally disclosed their plans to
consolidate, in compliance with the International Monetary Funds'
supported economic reforms to consolidate the country's frail
banking sector.
The widely diversified Bakri Group is expected to merge its
four banks next month, the Tirtamas Group is preparing to merge
its three banks, and the Ramako Group will merge its two banks.
The government led the move when it announced earlier this
year it would merge four state banks -- Bank Ekspor Impor
Indonesia, Bank Dagang Negara, Bank Bumi Daya and Bank
Pembangunan Indonesia.
Bob Hasan, a longtime confidante of Soeharto, said the new
bank would strictly separate the tasks of management and the
owners.
"The operational management of the bank will be handled solely
by the professionals, the owners cannot become a member of the
board of directors in the new bank," he said.
He said the four banks to be merged would form a new body to
take care of their bad debts.
Bank Duta reported its assets reached Rp 6.3 trillion and its
equity reached Rp 489.8 billion as of Dec. 31 last year. The
bank booked Rp 82.3 billion in before-tax profit last year.
BUN's total assets in the same period was Rp 9.3 trillion, and
its equity Rp 568.3 billion. The bank's before-tax profit was Rp
76.6 billion last year.
Bank Bukopin's total assets as of the end of last year was Rp
5.1 trillion and its equity Rp 265.8 billion, while last year's
profit before tax was Rp 50.5 billion.
Bank Tugu's total assets was Rp 330.2 billion, its equity Rp
71.2 billion while its before-tax profit last year was Rp 71.2
billion.
The banks said they would provide opportunities for other
banks to join the merger. (das)