JAKARTA (TheInsiderStories) – A private bank, KB Kookmin Bank will become the major shareholder of PT Bank Bukopin Tbk (IDX: BBKP), said the Financial Services Authority (FSA) on Sunday (05/17). The agency said, the South korean bank also open to increases the capital of the local lenders through another scheme.
Kookmin Bank will hold the shares by absorbed 2.3 billion new shares (around 20 percent of paid up and enlarged capital0 through rights issue program. The bank become a standby buyer for the stock issuances.
Currently, one of the largest bank in South Korea is the second largest shareholders of Bank Bukopin with a 21.99 percent ownerships. Other shareholders are, local tycoon, PT Bosowa Corporindo with 23.39 percent, Indonesian government 8.91 percent, Kopelindo 5.13 percent, and public 40.55 percent.
With this agreement, KB Kookmin Bank’ ownership in Bank Bukopin will automatically increases. Based on the FSA’ rule, foreign bank allows to have 40 percent of local bank and need the authority approval if wants hold over the limit.
In 2018, the lender bought 22 percent the local bank shares with worth of Rp1.55 trillion (US$103.33 million). The fourth largest bank in South Korea was negotiated with Bosowa to acquire its shares.
The company now in the process to release 2.73 billion shares or 30 percent of enlarged and paid up capital with offering price Rp570 a share. Eko Rachmansyah Gindo, the president director revealed, the right issue aims to improve its capital adequacy ratio to 14 percent, from now at 13.48 percent.
Last year, Bank Bukopin was suspected to providing misleading information related to the company’ financial statements. This include inaccuracies in reporting credit card receivables. The financial statement discrepancies were responded negatively by investors with the decline in the price of the shares of the lender.
The lender posted poor performance since 2018, with profit Rp150.84 billion in the third quarter of 2019 from Rp137.15 billion in prior year. This year the bank its expecting the net profit could reached Rp400 billion.
Bank Bukopin was established on July 10, 1970 with named Indonesia Cooperative General Bank. The company started is commercial business as cooperative general bank in Indonesia since March 16, 1971.
In its development, the lender has merged with several cooperative general banks. The change of name from the old name to Bank Bukopin was ratified in Jan. 2, 1990.
Currently, the bank’ operations are supported by more than 450 outlets in 23 provinces throughout Indonesia. The company has also built a micro banking network named “Swamitra”, which currently consists of 605 outlets, as a form of partnership program between the company and cooperatives.
In addition, Bank Bukopin also has 862 Bukopin ATMs, besides its connection with more than 30,000 ATMs in national network, Plus network, and Visa International network worldwide.
The bank also has two subsidiaries, namely PT Bank Syariah Bukopin and PT Bukopin Finance. Bukopin Finance (formerly PT Indo Trans Buana Multifinance), established on March 11, 1983, is a company engaging in leasing and multi nance. While Bank Syariah Bukopin was established on July 29, 1990, and engages in Sharia-based banking.
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