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)