Stanchart-Astra plans to add stake in Permata

Rendi A. Witular, The Jakarta Post, Jakarta

The new majority owner of Bank Permata, a consortium made up of local automotive giant PT Astra International and Britain's Standard Chartered PLC. (Stanchart), plans to add to its ownership in the bank by buying more shares.

Astra director Gunawan Geniusahardja, who is also Permata's new commissioner, said the consortium was very much interested in purchasing the government's 20 percent stake in the bank to be offered to public investors next month.

"There is always the possibility of the consortium increasing its stake in Permata. We are looking forward to the government's plan to unload 20 percent of its stake in the bank to public investors," said Gunawan on the sidelines of the bank's shareholders meeting on Monday.

Gunawan said the consortium was keen to expand its ownership to increase the synergy between the bank and Astra and Stanchart.

"We are interested in taking the 20 percent stake offered by the government," added Stanchart group head for consumer finance and banking Vincent Plant, who is also a new commissioner at Permata.

The Permata shares sale is being managed by the Ministry of Finance's asset management company PPA.

The government recently selected the Stanchart-Astra consortium as the winning bidder for a 51 percent stake in Permata, the country's seventh largest bank in terms of assets. It raised some Rp 2.77 trillion (US$305 million) in cash from the divestment.

PPA plans to sell another 20 percent stake via the stock market to raise funds to help finance the state budget.

PPA president director Mohammad Syahrial has said the Stanchart-Astra consortium will be the standby buyer for the 20 percent stake in publicly listed Permata, in case the sale fails to draw sufficient interest from the public.

Elsewhere, Permata shareholders were assured on Monday a legal battle with a company called PT Era Giat Prima (EGP) over some Rp 546.5 billion was over following the Supreme Court's decision favoring the bank.

Permata director Elvyn G. Masassya said the bank wanted to let investors know the bank was no longer engaged in a dispute over the funds. The legal case had dragged on for years.

"The settlement of the case and its announcement during the shareholders meeting is part of the bank's judiciary duty and transparency to all of its shareholders," said Elvyn.

The case began in 1999 when EGP, owned by well connected businesspeople, clinched a deal with the former owner of Bank Bali to help the bank recover about Rp 900 billion in funds from the government. Bank Bali was merged with four other banks two years ago to form Bank Permata. EGP claimed more than half of the recovered funds as its fee.