BTPN divestment

PT Perusahaan Pengelola Aset (PPA), a company established to manage remaining assets
of IBRA, starts to divest 18% shares in PT Bank Tabungan Pensiunan Nasional (BTPN) Tbk. PT Bahana Securities & PT Deutsche Securities Indonesia are financial advisors for the deal. BTPN has total asset of Rp4.31 trillion.


PPA, acting on behalf of GOI, controls 28.39% shares, followed by PT Recapital Advisors (22.61%), Fuad Hasan Masyhur (20%), Danatama Makmur (19%), and Bakrie Capital Indonesia (10%).
Previous owner of BTPN who surrenders BTPN shares to government/IBRA and the affiliate party are not allowed to participate in the deal. (Except nobody knows!)
The source of funds used to acquire BTPN shares shall not have orriginated from borrowing or other financing facilities in whatsoever form from banks or other parties in Indonesia. (You're encouraged to borrow from overseas banks or through fancy local-overseas-local channelling!!!!)

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Govt to offload Permata and BII shares

PT Perusahaan Pengelola Aset, a state-owned company established to manage the assets previously controlled by Indonesia Bank Restructuring Agency (IBRA), would offload the remaining shares in two listed banks, Permata and Bank Internasional Indonesia (BII), Tempointeraktif.com reported yesterday.

Raden Pardede, PPA vice president director, said the company had secured government approval early this month. Govt through PPA holds 26.16% shares in Bank Permata and 5.52% shares in BII. PPA is about to appoint financial advisor for the divestments scheduled in second semester.
PPA also has shares in six other banks, 5.04% of Bank Central Asia (BCA), 10.5% of Danamon, 5.25% of Niaga, 2.64% of Lippo Bank, 28% of BTPN, and 6% at May Bank. PPA plans to divest these shares until 2008.
Government controlled majority shares of these banks through a massive recapitalization program that cost tax payers Rp660 trillion (US$70 billion) during 1998-2001 period. Government started the divestment with BCA to Farallon & Djarum in 2001, followed by Niaga to Commerce Berhad (Malaysia), Danamon and BII to Temasek Holdings (Singapore), Permata to Standard Chartered (UK) and Lippo to Khazanah (Malaysia).

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Bakrie family to regain control over BTPN?

Bisnis Indonesia reported today that investment bank PT Renaissance Capital is searching for funding to acquire 71.6% shares of PT Bank Tabungan Pensiunan Nasional (BTPN), a bank previously controlled by Bakrie Family (who controls PT Bakrie & Brothers Tbk) with key figure Aburizal Bakrie (chief economic minister).
The acquisition value is predicted to reach US$90.3 million or 1.75 times of the bank's book value as of May 2001 at US$72.1 million.
As reported earlier by IFR Asia, Bakrie Family might be the real investor behind Renaissance. But Bakrie Family and Renaissance gave no confirmation on the rumor. BTPN was controlled by Bakrie Family before Indonesia Bank Restructuring Agency (IBRA) restructured the bank after the collapse of banking sector in 1998-1999.
PT Perusahaan Pengelola Aset (PPA), the company established to manage remaining assets under IBRA, hold 28.39% shares in BTPN, while Bakrie Capital owns 10%, Rifan Financindo 22.61%, and Mr Fuad Mansur 20%. It is not clear though whose shares Renaissance is planning to acquire. Besides, Rifan is known for its close relationship with Bakrie Group.
Credit Suisse First Boston (CSFB) is reportedly been appointed by investor to raise the funds to acquire BTPN. PPA initially approved a plan to raise BTPN's capital through initial public offering (IPO) but then back it off because the company is afraid of share dillution.
Early this week, media reported that Malaysian and Singaporean investors are vying for a majority stake in BTPN. Malaysian investors are state-investment company Khazanah Nasional Bhd and ICB Financial Group, while the Singaporean investor is Overseas-Chinese Banking Corp. But both Khazanah and ICB denied the report yesterday.
Khazanah is just completed the acquisition of 52% shares in PT Bank Lippo Tbk, while ICB is preparing a rights issue to increase capital at its subsidiary PT Bank Bumiputera Tbk.
If Bakrie really is behind Renaissance, it would be a silent comeback for the family after losing control over PT Bank Nusa Nasional (one of banks that merged into Bank Danamon). It is not clear whether Bank Indonesia would allow the family to regain control over the bank considering their track record.
Renaissance is a company established by three former partners at accounting firm Delloite Tohmatsu. They are Samin Tan, Suryadinata, and Dessi Natalegawa. The company is also financial advisor for PT Kiani Kertas, a company controlled by retired general Prabowo Subianto.

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Malaysia’s year of acquisitions!

I should say this year is Malaysia’s year in Indonesia’s investment, just like 2003 and 2004 for Singapore. A lot of acquisitions with totally different reaction from Indonesian.

Singapore investors were facing intense opposition and criticism, sometimes out of proportion nationalism sentiment during major acquisitions by Temasek on Indosat, Bank Danamon, and Bank International Indonesia (BII). That’s not the case with Malaysia’s acquisitions, at least in the last 12 months.
Last week, Santubong Investments BV, a wholly-owned subsidiary of Khazanah Nasional Berhad, completed its proposed acquisition of a 52.05% equity stake in PT Bank Lippo Tbk from Swissasia Global for approximately US$330 million.
Santubong is also planning to make a tender offer for the remaining shares in Lippo Bank it does not own. Lippo Bank is one of the largest private banks in Indonesia initially controlled by Riyadi Family who owns Lippo Group.
Khazanah is the third Malaysian investor to acquire Indonesian banks after the 1997 financial crisis. Commerce Berhad was the first major investor when it acquired Bank Niaga (2003) followed by ICB Group which controlled Bank Bumiputera since last year. ICB is in the process to raise the capital of its Indonesian subsidiary through rights issue sometimes next month.
Khazanah’s name also tipped in the possible acquisition of 71% shares of smaller size PT Bank Tabungan Pensiunan Nasional (BTPN) worth US$90 million. Yesterday, Khazanah denied the report, but people close to PT Perusahaan Pengelola Aset (PPA) said Khazanah is one of investors that expressed interest to acquire PPA’s 28% shares in BTPN.
Late September, Khazanah, the investment holding arm of Malaysian government, subscribed to a 16.8% stake in PT Excelcomindo Pratama for a total cash consideration of approximately US$234 million.
Excelcomindo is the third largest cellular telecommunication provider. Telkom Malaysia, where Khazanah has 40.64% shares, acquired 27% shares of Excelcomindo early this year leaving the founder PT Telekomindo Primabhakti (subsidiary of Rajawali Group led by Peter Sondakh) with the remaining 47.92% and Asia Infrastructure Fund (AIF) with 10%.
With the latest move, Malaysian control 41.8% shares of Excelcomindo, almost the same size with Temasek’s control over Indosat (formerly a state-owned telecommunication company and the second largest in the market).
Khazanah also has indirect investment in Indonesian telecommunication and multimedia market through Astro All Asia Networks where it has 21.52% shares. Early this year, Astro established a joint venture with Lippo Group to develop pay TV business. The new joint venture will invest US$1 billion in Indonesia in the next few years.
Early January, Malaysian telecommunication giant Maxis Communication had acquired a 51% shares of another Lippo subsidiary PT Natrindo Telepon Seluer for US$100 million and announced its plan to turn around the loss-making cellular operator by as early as 2010.
Right before entering the new year, Malaysian YTL Corporation Berhad fired the investment market with its surprise acquisition of 35% stakes in PT Jawa Power for US$139 million. PT Jawa Power is an independent power plant producing 1,200 MW of electricity. Siemens and Powergen are other major shareholders. I bet, a lot more Malaysian investment to come.

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