BANKING - BRI may merge banks if acquisition succeeds (Agroniaga - Bukopin)

JAKARTA: The largest bank by lending, state-owned BRI may merge its newly-acquired subsidiaries, Bank Agroniaga, and Bank Bukopin, if the planned acquisition of a majority stake in Bukopin has succeeded, president director Sofyan Basir said Thursday.

He explained the action would be necessary to comply with the BI regulation on single presence.

BRI acquired Bank Agroniaga in August, and now owns 88 percent controlling stakes in the mid-sized lender, as it wanted to expand more into the agricultural lending.

“If we acquire Bukopin, we have to comply with the single presence policy regulation. Agro and Bukopin they should merge,” Sofyan said.

State-owned pension fund firm Jamsostek had in the first place stated an interest in acquiring 20 percent of Bukopin shares, allocating Rp 800 billion (US$88.98 million) for these plans.

State-Owned Enterprises Minister Mustafa Abubakar allowed both Jamsostek and BRI to compete in acquiring Bukopin, but said BRI must back off if it could not comply with the single presence policy.

Sofyan’s statement on merging Agro and Bukopin answered previous speculation that BRI might not be able to compete with Jamsostek in acquiring Bukopin. — JP

Source : http://www.thejakartapost.com/news/2010/09/17/bri-may-merge-banks-if-acquisition-succeeds.html - Sept 17, 2010