JAKARTA (TheInsiderStories) - Management of local lender, PT Bank Mayapada Internasional Tbk (IDX: MAYA) said Cathay Financial Holding will enlarge its portion of ownership in the bank built by tycoon Dato ‘Sri Tahir. The Taiwanese financial company through its subsidiary, Cathay Life Insurance Co. Ltd., has become a controlling shareholder of the bank with a share portion above 25 percent and intends to increase it above 40 percent.
“Cathay is interested in increasing the portion of shares in Mayapda Bank and the process has entered the final stage. There has not been any concrete discussion regarding the position regarding the number of shares and so on,” said the CEO of the bank, Hariyono Tjahjarijadi to local media, yesterday (07/16).
Referring to financial statement data as of March 2020, the shareholders of Bank Mayapada were Cathay Life Insurance 37.33 percent, PT Mayapada Karunia 22.03 percent, Galasco Investment Ltd., 12.67 percent, Unity Rise Ltd., 7.31 percent, PT Mayapada Kasih 3.21 percent, Tahir 4.56 percent, and the public 7.21 percent.
Recently, the lender plans to increase capital through a pre-emptive rights. The amount of new shares to be issued is a maximum of 2.27 billion Series B or equal to 25 percent of the issued and fully paid capital. Based on the prospectus issued on June 10, the management said, the planned the fund will uses to strengthen the company’ capital structure.
This rights issue will be conducted after obtaining permission from the Financial Services Authority. Previously, the financial market regulator told the media that the due diligence process by Cathay Financial was expected to be completed this week.
All rights issue funds, after deducting issuance costs, will be used to strengthen the capital structure in increasing productive assets in the form of credit. It’s just that Bank Mayapada hasn’t set a target for implementing the rights issue price.
Recently, Tahir has injected capital in cash with a total of Rp1 trillion (US$69.93 million). In details, the capital injection of Rp252,087 billion on April 28 and Rp750 billion on July 1, 2020.
“The placement of these funds strengthens the capital aspect and is part of the company’s phased plan to conduct a limited public offering XIII in 2020 totaling Rp.4.5 trillion,” wrote by the management.
Bank Mayapada was formed on September 7, 1989 in Jakarta and then began operating commercially on March 16, 1990. Since March 23, 1990, the company officially became a commercial bank, followed by the acquisition of a license from Bank Indonesia as a foreign exchange bank in 1993. In 1995 the bank changed the name became Mayapada International Bank and in 1997 took the initiative to go public.
US$1: Rp14,300
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