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Jakarta Post

Bank Agris denies BCA acquisition rumor

  • Anton Hermansyah
    Anton Hermansyah

    The Jakarta Post

Jakarta   /   Sat, June 24, 2017   /   02:42 pm
Bank Agris denies BCA acquisition rumor Bank Agris compliance director Adrian Hak (from left), president commissioner Paulus Nurwadono, and president director Sia Leng Hong speak to journalists at the Indonesia Stock Exchange (IDX) building in Jakarta on June 22. (JP/Anton Hermansyah)

Publicly listed lender Bank Agris has underlined that it is not seeking new investors, denying a market rumor saying that it is in negotiations with Bank Central Asia (BCA) for acquisition.

Bank Agris president commissioner Paulus Nurwadono said the Financial Service Authority (OJK) had told the bank to increase capital, but replied that it would not do so in the near future due to current economic conditions.

"We never had a plan for corporate action, such as share offerings or finding strategic partners. While we’re still in the Buku I category, we will keep focusing on agriculture, poultry and fisheries," Paulus said in a press conference in Jakarta on Thursday, referring to the term used to categorize banks with a Core Capital of less than Rp 1 trillion (US$75 million).

BCA president director Jahja Setiaatmadja recently said the firm planned to acquire two small banks in the Buku 1 category in the second half of 2017. Eyeing those with strong portfolios in the retail and small and medium enterprises (SMEs) segment, BCA has set aside Rp 3 trillion for the acquisition.

BCA’s plan has sparked speculative buying over Bank Agris’ shares, which rocketed by 291.23 percent in the last three months, for it currently has a core capital of Rp 580 billion.

Bank Agris is owned by PT Dian Intan Perkasa (DIP), controlled by Benjamin Jiaravanon, a member of the family controlling PT Charoen Pokphand Indonesia. DIP holds 82.59 percent of shares in Bank Agris, while Benjamin individually holds 0.28 percent. The public holds the remaining 17.12 percent. (ags)