JAKARTA (TheInsiderStories) – Indonesian businessman Ilham Habibie through his company Al Falah Investments Pte. Ltd. will become the controlling shareholder of PT Bank Muamalat Indonesia, after finalizing the acquisition of 50.3 percent of the Islamic bank shares. The transaction is targeted to be completed in May, said the company in the media publication on Wednesday (04/17).
The investment fund will absorb the bank’ shares through preemptive rights with targeting values worth of Rp2.2 trillion (US$157.14 million). As for later, Al Falah will take part 77.1 percent of the lender shares.
In that publication was also mentioned, if the existing shareholders do not execute their rights in the limited public offering, Al Falah will act as a standby buyer.
Al Falah is a company established under Singapore law. This company is owned and established with Ilham Akbar Habibie and CP5 Hold Co 2 Ltd., an investment company that is indirectly owned 100 percent by SSG Capital Management Ltd., for the purpose of investing in Bank Muamalat. SSG is an alternative asset management company with assets under management of $5 billion.
When this acquisition plan was issued, all of the shares of Al Falah were still owned by CP5. However, the process of changing the composition of shareholders is underway, in which Habibie will hold 51 percent of Al Falah and CP5 shares 49 percent. At present Al Falah’s capitalization is reaching $121 million.
Bank Mualamat is still awaiting objections from creditors and the company’s minority shareholders to the acquisition plan no later than April 18. The acquisition is targeted to get permission and Financial Services Authority and will be completed in May 2019.
Currently the bank’ shares are owned by the Islamic Development Bank of 32.7 percent, Boubyan Bank 22 percent, Regional Holdings Limited 17.9 percent, National Bank of Kuwait 8.5 percent, IDF Invesmnet Fondation 3.5 percent, BMF Holdings Ltd 2,8 percent and other minority shareholders 12.6 percent.
While after the rights issue is completed and the existing shareholders execute their rights, the composition of Bank Muamalat’s share ownership is Al Falah 50.3 percent, other standby buyers if there are 8.9 percent, Islamic Development Bank 11.4 percent, Boubyan Bank 7.7 percent, Regional Holdings Limited 6.2 percent, National Bank of Kuwait 2.9 percent, IDF Invesmnet Fondation 1.2 percent, BMF Holdings Limied 1 percent and other minority buyers 10.5 percent.
Previously, on 2018, Bank Muamalat mentioned that company will be issuing as much as 20 billion new shares and hope to collect around Rp2 trillion ($137.93 million).
Habibie as the president commisioner of Bank Muamalat explained that he would lead an investor consortium consisting him, Panigoro family, Singapore’s Lynx Asia and SSG Capital. The process of rights issue approval to be held on Oct. 11.
He said, first the new shares of BMI will be offered to the old shareholders and the rest will be taken by the standby buyer, at this point is the consortium. Habibie stated, “If all shareholders do not exercise their rights, they will be diluted to more than 60 percent.”
President Director of Bank Muamalat Ahmad Permana commenting, with the certainty would help strengthen the lender’s capital and the future business plans. The bank needs sufficient capital to expand its business.
Bank Muamalat were constrained by problem non-performing finance which had reached 4.95 percent, close to the limit set by the regulator at 5 percent.
He said, after the rights issue, the bank will maintain a Capital Adequacy Ratio remaining above 14 percent. As for Semester I 2018, the bank’s CAR was at 15.92 percent.
“We are optimistic that Bank Muamalat’s capital will be stronger and more stable, so that the company’s efforts to expand financing can run well,” said Permana.
Before the new consortium, PT Minna Padi Investama Sekuritas Tbk also offered to inject capital up to Rp4.5 trillion. However, the plan was not approved by FSA because the company did not want to disclose the source of funds to be injected into the bank.
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