BNI Wants 40 Percent of Shares to be Offered Next Year
Wednesday, 06 December, 2006 | 16:58 WIB

TEMPO Interactive, Jakarta: PT Bank Negara Indonesia wants to offer 40 percent of its shares to the public next year. The plan was proposed to parliament at a meeting with the Working Committee on Privatization at the House of Representatives yesterday (12/5) in Jakarta.

The management of BNI has proposed privatization of BNI Shares of 40 percent or 5,312,674,960 shares. The plan was through two scenarios. First: the right issue with 15 percent of shares. Sales funds will be saved in the company's office and the government's ownership will be diluted. The second scenario would be that of a secondary offering to the public with 25 percent shares.

Based on the BNI proposal to the House of Representatives (DPR), the company's management has assumed that the share price of BNI would be between Rp1,400 and Rp2,200 per share . By using the method of comparative approach, sales of 40 percent of BNI shares will emerge with state revenues of between Rp7.3 trillion and Rp12.6 trillion.

After the working committee, Managing Director of BNI Sigit Pramono was reluctant to explain about the plan. “We have only conveyed his opinion,' he said. However, he has never stated previously that BNI plans to issue new shares next year to strengthen its structure . The offering was also an attempt to add a portion of BNI shares at the stock exchange so that it would increase liquidity.

In addition to the government, the corporate act would be aimed at covering revenue target of privatization of State-Owned Enterprises (BUMN) next year with Rp3.3 trillion. Up until now, public shares that the government own are only around one percent.

A member of the DPR working committee Max Moein did not agree with the proposal of BNI management. He stated that the plan for offering 40 percent of BNI shares would be too high. “The realistic rate would be between 25 and 30 percent,' he said. However, he did not argue about the plan of share offering because it will improve the performance and strengthen the company's capital structure.

AGOENG WIJAYA | S IKA SARI | BUDI RIZA