In 2012, the state owned lender was in discussions with some Japanese and Korean financial organizations, but failed to complete the transaction, as reported by The Wall Street Journal.
Initially, the bank started the process to divest some stake of the insurance in February 2013, although its controller could not decide how much stake should be divested, subsequently delaying the deal.
Sources familiar with the matter were quoted by the news agency that the bank will sell 40% stake in the insurer, although any specific price has not been tagged yet.
The bank has hired BNP Paribas, PT Bahana Usaha Indonesia, PT Danareksa and BNI Securities to offer advices over the deal, and has already sent ‘information memorandums,’ or marketing materials to more than 10 parties.
The first round of bidding process is expected to complete by August 2013, and concerned parties could ink the deal by the end of the year, one source familiar with the matter added.
The bank is also providing a 20-year bancassurance agreement with the sell-off insurance business, which will enable the proposed acquirer to market their products through the bank’s branches.
BNI served 14 million customers, through 1,500 branches in Indonesia and some overseas offices, as of 30 September 2012.
