Takeover of Bank Papan shares violates rules

Takeover of Bank Papan shares violates rules

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
Chairman Bacelius Ruru said Tuesday that the sale of around 22
percent of Bank Papan Sejahtera's shares to businessman Jopie
Widjaya violated the agency's disclosure procedures.

"Those involved in the deal would, therefore, be fined for the
delay in reporting the deal to Bapepam," he told a routine press
briefing.

Ruru said that the delay in reporting the deal was the only
mistake found in Jopie's controversial takeover of the bank's
majority stake.

The chairman of the capital market watchdog, however, refused
to disclose if the management, buyer and seller involved in the
transactions would all be sanctioned. He also refused to explain
the amount any fines to be imposed.

According to Bapepam's regulations, the publicly-listed
companies should report to Bapepam any events which could affect
share prices within 24 hours. Bapepam also requires disclosure of
those owning five percent or more, and to report any change in
the amount of their shares.

Jopie, the president of the publicly listed Steady Safe,
acquired 22.52 percent of Bank Papan's shares from PDFCI and
other bank's founders through his wholly-owned Infiniti Wahana in
May. But sources said that Jopie had also acquired another 29
percent stake through his affiliated firms, making Jopie the
largest single shareholder in the bank.

Jopie's unprecedented takeover of Bank Papan, however, caused
concern among the public, who feared that the new majority
shareholder would divert the bank's main business of mortgage
operations to other consumer banking activities.

Business analysts also alleged the transaction was unfair,
given Jopie's not-so-promising financial condition. Jopie was
accused of illegally using funds of Steady Safe in financing the
transaction.

In the Tuesday press briefing, Ruru said that his agency had
found nothing strange in the transaction despite the public
controversy.

"The late reporting of the deal was the only mistake," he
said.

Jopie Widjaya sold again half of his stake in the bank to
local businessman Hashim S. Djoyohadikusumo last week, just
months after he took over the stocks from one of the bank's
founders.

The capital market watchdog's chairman said that the latest
transaction of Bank Papan's stocks was carried out according to
existing procedures.

The takeover made Hashim, the son of noted economist Sumitro
Djoyohadikusumo, the bank's largest single shareholder, with a
stake of 19.8 percent.(hen)