Texas Pacific Group to
acquire majority shares

Publicly listed Bank Tabungan Pensiunan Nasional (BTPN) is slated to sell all its non-public shares to a U.S.-based private equity company this week, expecting to raise around US$195 million in proceeds.

BTPN president director Paulus Wiranata told reporters Wednesday the sale process for the bank's 71.61 percent stake to Texas Pacific Group's (TPG) local unit Texas Pacific Group Nusantara would start later this week.

"If all (procedures) are cleared, the acquisition process will start soon this week," he said, adding the bank would gain an additional $18 million in proceeds from TPG if certain conditions were met.

He declined to reveal the conditions.

TPG is one of the largest U.S. private equity firms with more than $20 billion under its management.

Founded by, among others, billionaire David "Bondo" Bonderman, TPG portfolios include Ducati Motor Holdings, J. Crew Group, Raffles Hotel, Metro-Goldwyn-Mayer Inc., Debenhams Food and Beverage, Burger King, Del Monte Foods, Bally and Seagate Technology.

Paulus could not say when the TPG acquisition process would be completed.

The BTPN non-public shares include a 22.61 percent stake owned by PT Recapital, a 20 percent stake by entrepreneur Fuad Hasan Masyhur, a 19 percent stake by PT Danatama Makmur and a 10 percent stake by Bakrie Capital.

Last month, the Bandung-based BTPN unloaded its 28.93 percent stake of government-owned shares to the public via an inital public offering (IPO) scheme, raising as much as Rp 764 billion ($83 million).

BTPN corporate secretary Lieke Roosdianti said the entire IPO proceeds would be transferred to state asset management firm PT Perusahaan Pengelola Aset.

Lieke said around 75 percent of the unloaded shares were purchased by foreign-based investment firms, and the remaining 25 percent by local investors.

During its debut listing on the Indonesia Stock Exchange, BTPN failed to impress its public investors, as the lender's shares declined by 2.6 percent or Rp 75 to Rp 2,775 at the close of trading Wednesday.

BTPN, established in 1958 as a pensioners' savings bank, now operates as a fully fledged commercial bank.

In 2007, Paulus said, the bank recorded around Rp 350 billion in net profit with total assets of about Rp 10.5 trillion. The bank disbursed Rp 6 trillion in loans last year and expected the figure to grow to Rp 8 trillion this year.

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