Mandiri financially capable of buying Bank Mutiara
Tue, October 4 2011 20:29 | 2523 Views
Jakarta (ANTARA News) - PT Bank Mandiri Tbk. is studying the possibility of acquiring Bank Mutiara Bank or the former Bank Century, its president director, Zulkifli Zaini, said.
Zulkifli Zaini. (ANTARA/Ismar Patrizki)
He said financially Bank Mandiri was quite capable of buying Mutiara Bank but a study still had to be made on its profitability.
Bank Mandiri, he said, was present the country`s biggest bank in terms of capital.
"Bank Mandiri now has a capital of Rp56 trillion which is the biggest in Indonesia. It is the only bank that meets the criteria of an international bank. Based on the Bank Indonesia Architecture as far as I know only Bank Mandiri meets the criteria. In capital terms we are indeed good," he said.
He said however Bank Mandiri`s financial capability could not be used as the only reason for acquiring Bank Mutiara.
"(Consideration must also be made) on whether M and A, management and acquisition are beneficial or not. That will be determined by the results of our study later," he said.
He said Bank Mandiri right now was still studying the idea and if later it was found to be beneficial it would be realized.
"Yes, we have said before that this is a business-to-business question. If it really will give an added value to Bank Mandiri we will certainly consider it. So we are still studying it and if it gives an additional value we will follow it up," he said.
"The decision will be a very business-to-business deal," he added.
Zulkifli Zaini admitted that Mutiara Bank had made a lot of progress. "Compared to its conditions several years ago the bank has been better," he said.
The process of divestment of government shares in Mutiara Bank has been started since July 8, 2011 when the Deposit Insurance Agency (LPS) announced it in line with Law Number 24 of 2004 on LPS.
In its announcement LPS gives investors an opportunity to submit their applications to PT Danareksa Sekuritas on July 18, 2011 by the latest.
Nine investors have expressed an interest to buy the bank so far and out of them only three have confirmed their interest.
Based on the Law on LPS Mutiara Bank is given until 2013 to divest its shares to collect minimally Rp6.7 trillion which is equal to the funds produced by the government to bailout Century Bank.
If the bank fails to sell its shares to the amount set by the law until 2013 it will be allowed to sell it at any price.
Editor: Priyambodo RH
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