PPA to name shortlisted bidders early next month

Dadan Wijaksana, The Jakarta Post/Jakarta

The Assets Management Company (PPA), a state agency overseeing state asset sales, will name as many as five shortlisted bidders for the majority stake in Bank Permata early next month, its vice president said on Thursday.

"We'll shortlist the potential bidders, probably to between three to five, in early September. But, we still have to consult with the minister of finance," Raden Pardede said on the sidelines of a discussion here.

The Ministry of Finance oversees the PPA -- which is in charge in managing and selling unsold assets formerly controlled by now- defunct Indonesian Bank Restructuring Agency (IBRA).

Raden did not mention how many interested investors have so far officially bid for the nation's ninth largest lender in terms of assets, but said there were six large investors that had received the info memo -- a list of additional information on Permata.

UK's Standard Chartered Plc., Singapore's United Overseas Bank Ltd., Malaysia's Malayan Banking bhd., and Bank Danamon were all included in that group, Raden said, without naming the remaining two.

Receiving the info memo means that the six potential bidders have been given access to much more detailed information on the bank, which indicates their seriousness, Raden added.

Given that many have expressed interest in the bank through the media, the number of potential investors could well increase before the Aug. 23 deadline to confirm their interest.

On the domestic front, Bank Rakyat Indonesia (BRI), Mandiri, Panin, Buana, Artha Graha and Niaga are all said to be interested in Permata, while more foreign investors are also expected to join following a number of off-shore road shows carried out by PPA officials.

The government, via PPA, plans to sell a 71 percent stake in Permata with proceeds to be used to help finance the 2004 state budget deficit.

It will first sell a 51 percent stake in the bank through strategic investors, with the winner expected to be named by the third week of December, to be followed by the sale of another 20 percent stake via the stock market.

At present, PPA owns a 97.17 percent stake in the publicly listed lender.

Permata was formed two years ago through a merger of five banks controlled by IBRA; Bank Bali, Universal, Arthamedia, Prima Express and Patriot.