Bank Negara Indonesia Vies for Control of Bahana
In a bid to buy control of Bahana Securities, Bank Negara Indonesia plans to sell Rp 1.2 trillion ($126 million) of recapitalized bonds to finance the acquisition.
The lender has sent a letter notifying the State Enterprises Ministry of its plan to acquire the stake in Bahana, BNI president director Gatot Suwondo said on Friday.
He said he had not yet received a response from the government.
“According to our calculation, the acquisition value is worth Rp 1.2 trillion,” he said, adding that BNI had Rp 17 trillion of recapitalized bonds in its books.
Gatot said that using some recapitalized bonds would help reduce the government’s debt, suggesting that the government should welcome the move.
If BNI goes ahead with the plan, it has to compete with rival Bank Rakyat Indonesia to acquire control of debt-ridden Bahana.
BRI president director Sofyan Basir said last week that the lender was scouting the market to buy a brokerage company. He did not name any target, but market speculation suggests BRI has been seeking a stake of Bahana.
Bahana Securities, a unit of Bahana Pembinaan Usaha Indonesia, has been in limbo since it failed to sell its stake in Garuda Indonesia during the national airline’s capital debut last year.
Bahana Securities and two other state-controlled brokers, Danareksa Sekuritas and Mandiri Sekuritas, were stuck with Garuda shares after they could not sell them all during the airline’s initial public offering in February last year.
In April this year, the brokers finally sold their more-than-10 percent stake in the airline for more than $150 million to businessman Chairul Tanjung.
BNI has one brokerage unit, BNI Securities.
The lender has not yet reported its first-half financial results.
Shares in BNI rose 2 percent to Rp 3,850 while shares in BRI rose 5.5 percent to Rp 6,750 on the Indonesia Stock Exchange on Friday. Demand for Indonesian bank stocks rose on expectations of good earnings results in the first half of the year.