Bank Negara hopes to sell life unit for five times unit’s IDR350 billion tier one capital | Insider company data
(Insider Stories)—State-owned PT Bank Negara Indonesia (BBNI) hopes to set the sale price for its life insurance unit PT BNI Life at five times the unit’s tier one capital of 350 billion rupiah ($36 million), while more than 10 companies from the U.S., Europe, China, Japan and Korea has expressed interest in buying the life unit, BNI finance director Yap Tjai Soen tells The Insider Stories.
BNI CEO Gatot Suwondo also says at a Thursday shareholders meeting that to meet central bank regulations, it will sell shares of the life unit via both a private placement scheme and sales to strategic investors, with the transactions expected to close this year.
He says due diligence is complete for the acqusition of PT Bahana Pembinaan Usaha Indonesia (BPUI) and the acqusition proposal sent to the State-Owned Enterprises Ministry, but doesn’t give details on the value or timing of the deal.
The Annual General Shareholders Meeting agreed a dividend of IDR113 per share, equivalent to 30% of 2012 net profit, to be paid May 16. The shareholders meeting also approves the appointment of Sutirta Budiman as a new director and Pandu Djajanto as a new commisioner.
