According to Bank Commonwealth, which revealed its plans in a statement in the Bisnis Indonesia newspaper, approximately 107.7 million of the shares will be purchased from controlling shareholders, while 50 million shares will be bought from other investors.
The offer price is 55% higher than the closing share price of IDP1,070 on December 19, 2006. Michael Gleeson, a Commonwealth Bank spokesman, has confirmed the offer and revealed that it is subject to regulatory and shareholder approval.
Indonesia’s lenders are currently attracting buyers due to the country’s expanding economy and the fact that its central bank, Bank Indonesia, is forcing lenders to find investors or consolidate their activities. Bank Indonesia expects approximately 40% of the nation’s banks to be combined or acquired by overseas companies in the next four years.
Bank Commonwealth’s plans to buy an 83% stake in Surabaya-based Bank Arta Niaga come alongside those revealed by the Industrial and Commercial Bank of China to pay IDR90 billion for a 90% stake in Bank Halim Indonesia.
