JAKARTA (TheInsiderStories)—PT Bank Permata Tbk (IDX: BNLI) sold 25 per cent stake in PT Astra Sedaya Finance (ASF) to PT Astra International Tbk (IDX: ASII) and PT Sedaya Multi Investama (SMI) for Rp2.8 trillion.
In a filing to the Indonesia Stock Exchange, Bank Permata management stated that the company sold 178.21 million shares or 18.75 per cent of ASF shares to Astra International for Rp2.1 trillion on May 25, 2018, another 59.4 million or 6.25 per cent shares are sold to SMI for Rp700.61 billion.
The Head of Corporate Secretary of Bank Permata Katherine Grace said this transaction will strengthen the company’s capital ratio, increase the lending capacity which is important factors to support the company’s strategic plan to realize asset growth and improve the overall performance of the company.
Before the transaction, the composition of ASF shareholders consisted of Bank Permata 25%, SMI 18.8%, Astra International 28.1%, and PT Garda Era Sedaya (GES) 28.1%. After the transaction, ASF shareholder composition will be Astra International 46.85%, SMI 25.05%, and GES 28.1%.
After this transaction, Bank Permata shares weakened 0.40 per cent at 498 rupiah in yesterday’s trading.
There is a potential conflict of interest between Bank Permata with Astra and SMI. Astra owns 44.56 per cent shares of the Bank Permata and 99.99% of SMI shares. In addition, Suparno Djasmin who served as the Vice Commissioner of Bank Permata also serves as Director of Astra. Furthermore, Commissioner of Bank Permata Mark Spencer Greenberg also serves as Commissioner of Astra.
To avoid the potential conflict of interest, Bank Permata has appointed Appraiser Service Office Suwendho Rinaldy and friends as an independent appraiser to provide a fairness opinion on the transaction.
Bank Permata is a result of a merger five banks, PT Bank Bali Tbk, PT Bank Universal Tbk, PT Bank Prima Express, PT Bank Artamedia and PT Bank Patriot in 2002. Throughout 2017, PermataBank posted a net profit of Rp748 billion (US$54.60 million) after it recorded a net loss of 2016 that reached Rp6.48 trillion. The bank had Rp165.5 trillion in total assets at the end of Dec. 2017 and has more than 330 branches.