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KB Kookmin Bank, Bosowa Corporindo end legal battle over KB Bukopin
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Cash in hand: A customer counts money after withdrawing it at KB Bukopin in Jakarta in June 2020. (JP/Wendra Ajistyatama)
S
outh Korean KB Kookmin Bank and Indonesian conglomerate PT Bosowa Corporindo have reached a six-point agreement to end a legal dispute over how to solve the liquidity issue of publicly listed KB Bukopin.
Bosowa Corporindo, once the controlling shareholder of KB Bukopin, filed a lawsuit against the Financial Services Authority (OJK) after the agency had stripped the company of its voting right over a private placement decision at a shareholders meeting in August last year.
KB Kookmin Bank, now the controlling shareholder, and Bosowa Corporindo agreed to cancel all lawsuits and not file any new ones that would undermine the efforts to restore normal operations at KB Bukopin, according to a press release published by KB Bukopin on Monday.
“KB’s focus right now is to advance KB Bukopin’s business, which will in turn raise the shareholders’ investment value,” Cho Nam Hoon, the managing director for global business at KB Kookmin Bank, was quoted in the release as saying.
“This agreement we reached with Bosowa will have an extraordinary impact on our synergy as shareholders for the improvement of KB Bukopin.”
The agreement was reached nearly half a year into the legal battle that took place amid KB Bukopin’s attempt to solidify its financial position. The lender’s liquidity coverage ratio, which reflects a bank’s ability to meet its short-term obligations, stood at 112.03 percent in the first quarter of last year, barely above the minimum 100 percent required by the OJK.
Read also: Bosowa seeks to annul Bank Bukopin private placement plan, sues OJK
