Sebastian Paredes resigns from Danamon

Juan E. Sebastian Paredes M has tendered his resignation letter as chief executive officer (CEO) of Bank Danamon. He has been in the position since May 2005. Danamon had total asset of Rp100 trillion as of Sept 2009, while its market capitalization surged 112% since April 2009 to Rp44 trillion.

People close to Bank Danamon confirmed the rumor that Sebastian Paredes resigns as the CEO of the bank. "There will be a media briefing on Monday about that," one source at Danamon said Friday night. It is not clear why Sebastian resigns.

Danamon told IDX Monday morning that his resignation will be effective after the bank's shareholders meeting scheduled in April 2010.

Sebastian was appointed CEO of Danamon in May 2005. An Ecuador citizen, Sebastian born in 1961. Graduated with bachelor of science from California State University, Sebastian (his full name is Juan Eugenio Sebastian Paredes Muirragui) got his MBA from Instituo de Empresa, Madrid, Spain. He was managing director of Citigroup for South Africa before the Danamon job. 

Danamon is indirectly controlled by Singapore's Temasek Holdings. Danamon is the fourth largest bank in Indonesia in terms of market cap, behind BCA, Mandiri, and BRI, but the sixth in terms of asset behind Mandiri, BRI, BCA, BNI, and CIMB-Niaga.

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Danamon acquired more Adira shares

PT Bank Danamon (BDMN) Tbk has finally acquired 200 million (20%) shares of PT Adira Multidinamika Finance (ADMF) Tbk from Mega Value Profits Ltd for about US$140 million. 

Crossing of shares have been completed this morning at Rp7135 per share. After the acquisition, Danamon controls 95% shares in Adira. Adira stock price surged 5.71% to Rp3700 this morning. The recent peak is Rp4700 in April 30.

Last year, Bank International Indonesia (BII), also acquired majority shares in consumer financing company PT WOM Multifinance Tbk. This year, Bank Mandiri acquired another automotive financing company PT Tunas Finance Tbk.

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Plaza Indonesia & Danamon derivative settlement

PT Plaza Indonesia Realty (PLIN) Tbk and Bank Danamon agreed to terminate a master agreement for foreign exchange transaction where PLIN has to pay termination fee of Rp83.5 billion. 

PLIN told Capital Market Supervisory Agency (Bapepam) on Tuesday that the agreement was signed July 2nd, 2009. According to the settlement agreement, Plaza Indonesia will pay Rp83.5 billion to Danamon in six years starting December 31, 2009 until December 30, 2014.

Plaza Indonesia reported net loss of Rp233 billion last year against net profit of Rp101 billion in 2007, mainly because of huge losses from derivative transactions of Rp239 billion and forex translation loss of Rp149 billion.

The company also booked net loss of Rp55 billion in Q1 2009 against net profit of Rp58 billion in Q1 2008, mainly due to forex translation loss of Rp69 billion.

PLIN is the owner of Grand Hyatt Hotel Jakarta, Plaza Indonesia shopping mall, and EX Plaza. The company secured US$150 million loan from Sumitomo Bank in 2006. 

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