BOC among bidders for Bank Internasional
Updated: 2008-03-13 09:17
Bank of China Ltd (BOC) and Malayan Banking Bhd are among companies selected by Temasek Holdings Pte to bid for its controlling stake in PT Bank Internasional Indonesia, two people familiar with the matter said.
The successful bidder may make a full takeover offer for Indonesia's sixth-biggest bank, the people said, declining to be identified because talks are confidential. The Jakarta-based company has a market value of $2 billion. The Wall Street Journal earlier reported that Bank of China is a bidder.
The Industrial and Commercial Bank of China Ltd and State Bank of India have made acquisitions in Indonesia in the past two years, gaining a foothold in an economy that grew 6.3 percent in 2007. Bank lending surged 26 percent in January from a year earlier as the central bank reduced borrowing costs and incomes rose.
"The momentum is great in terms of the economy, which filters into the banking sector as well," said Lawrence Chen, an analyst with Fox-Pitt Kelton Ltd. in Hong Kong. Buying Bank Internasional "can really give the international guys a quick increment to their footprint in Indonesia."
Temasek owns 75 percent of a joint venture that holds about 56 percent of Bank Internasional. Kookmin Bank, South Korea's largest, owns the remaining 25 percent. The Singapore sovereign wealth fund is selling its stake to meet central bank rules that limit investors to ownership of one bank. It also owns part of PT Bank Danamon Indonesia.
Rising Salaries
Kookmin Bank has the first right to bid and to match offers from the other bidders, the people said. The deal may be valued at about 3.5 times Bank Internasional's book value, they said.
Bank Internasional has gained 35 percent this year in Jakarta, making it the best-performing banking stock in the nation after PT Bank Mayapada. The shares rose 4.1 percent today.
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