The Jakarta Post
State-owned lender Bank Rakyat Indonesia (BRI) is set to disburse Rp 71.32 billion (US$5.28 million) to acquire 35 percent stakes in venture capital firm PT Bahana Artha Ventura (BAV), equal to 71,207 shares.
The lender announced the acquisition plan earlier in November, but did not disclose the value. BRI president director Suprajarto said previously that both parties had signed a private placement agreement on Nov. 9.
As BRI and BAV are both controlled by the government through their stakes, the transaction is categorized as an affiliate one, according to a letter of information disclosure in the Indonesia Stock Exchange (IDX) website over the weekend.
In the letter, BRI also said that it had decided to acquire BAV to further increase the former’s financial inclusion in the small-medium enterprises (SMEs) segment, to be more involved in the development of non-monetary firms as targeted by the government and to step up the bank’s collaboration with financial technology (fintech) startups.Read also: BRI intensifies support for SMEs
“Choosing BAV as an investee is based on our common business focuses in the SMEs and is expected to ease our synergies in the future,” the letter read. “The structure of BAV and its subsidiaries, which are spread across all regions nationwide, is what is needed to support BRI’s roles in boosting the government’s financial inclusion program.”
With the transaction, BRI has become BAV’s second-largest shareholder after PT Bahana Pembina Usaha Indonesia (BPUI) with 64.65 percent. The remainder is owned by BPUI labor union’s cooperative. (dea/lnd)