Stanchart-Astra plans to add stake in Permata

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.