The government may raise up to Rp 740 billion (US$82.88 million) from Bank Negara Indonesia’s (BNI) rights offer at the end of this year, the bank’s top executive says.
BNI president director Gatot M. Suwondo said in Jakarta on Tuesday that the government, which owns
73 percent of the bank, would not use its pre-emptive rights to buy new shares.
He said that the government would instead sell its right (to buy the shares) to other parties for
Rp 300 each.
“With this price assumption, the government may raise up to Rp 740 billion,” he said,
Gatot said that buyers would therefore have to pay Rp 3,400 for the shares allocated to the government — Rp 300 higher than the new share price, which has been fixed at Rp 3,100.
In the rights issue, BNI will sell 3.37 billion new shares. Existing shareholders will have the right to buy 110,473 shares for every 500,000 shares currently held.
Gatot said that the price for the rights offer had been fixed at 3,100 per share, which was in the middle of the previously set price range of Rp 2,300 to Rp 3,700 per share — and nearly a 20 percent discount compared to Monday’s close price of Rp 3,850.
In the rights issue, BNI is looking to collect Rp 10.46 trillion in fresh funds, higher than its previous
target of Rp 7 trillion, making it the biggest rights issue in Indonesia this year.
About 60 percent of the shares would go to institutional investors and the other 40 percent to individual investors, Gatot said.
State-Owned Enterprises Minister Mustafa Abubakar previously said that 65 percent of the rights issue would be allocated to domestic investors and 35 percent to foreign investors.
Eighty percent of the proceeds from the rights issue would be used to raise BNI’s tier 1 capital to somewhere between 16 and 17 percent from its current 10 percent level, Gatot said.
BNI’s capital adequacy ratio (CAR) was also expected to climb to between 19 and 20 percent from 12.5 percent at present, far higher than the minimum CAR level of 8 percent set by Bank Indonesia, he said.
“We need stronger capitalization of at least Rp 10 trillion to disburse more loans to small and medium enterprises and also for consumer loans, because the Rp 1 trillion in loans BNI has disbursed will make the CAR slide by about 0.2 percent,” Gatot said.
Fifteen percent of the rights issue has been earmarked for technology development as the lender has planned to open a branch office in the US, according to a statement made by BNI.
The remaining 5 percent will be used to expand of several BNI units, including BNI Life, BNI Syariah, BNI Securities and BNI Multifinance.
Shares in BNI (BBNI) immediately fell following the announcement to close down 5.19 percent, or 200 points, at Rp 3,650 on Tuesday.
The state-controlled lender, which first offered shares for Rp 850 during its initial public offering (IPO) in 1996, has a total market capitalization of Rp 55.74 trillion, making it the fifth biggest state firm. (est)
Source : http://www.thejakartapost.com/news/2010/11/24/govt-raise-rp-740b-bni-rights-offer.html - Nov 24, 2010
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