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OJK approves Kookmin as Bukopin’s controlling shareholder
The OJK announced the decision on Wednesday after Bank Bukopin concluded its rights issue process on Tuesday, in which Kookmin injected Rp 1.46 trillion (US$100.12 million) in fresh funds to Bukopin.
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he Financial Services Authority (OJK) has approved South Korea’s KB Kookmin Bank to be one of publicly listed Bank Bukopin’s controlling shareholders.
The OJK announced the decision on Wednesday after Bank Bukopin concluded its rights issue process on Tuesday, in which Kookmin injected Rp 1.46 trillion (US$100.12 million) in fresh funds to Bukopin to strengthen the latter’s capital and support its business.
The injection also increases Kookmin Bank’s stake in Bank Bukopin to 33.9 percent from previously 22 percent.
“This decision also makes Kookmin Bank’s parent company, South Korea’s biggest financial firm KB Financial Group (KBFG), Bank Bukopin’s ultimate shareholder,” the OJK said in a statement.
Bukopin has been facing liquidity issues as several customers reportedly faced difficulties in withdrawing their money in June. The bank’s consolidated short-term liquidity coverage, known as the liquidity coverage ratio (LCR), stood at 112.03 percent in the first three months of the year, while its consolidated long-term liquidity coverage, known as the net stable funding rate (NSFR), stood at 100.31 percent.
Both figures were nearing the OJK’s minimum threshold of 100 percent.
The bank later issued a statement on June 25, explaining the implementation of withdrawal limits at several branches were “situational” so that the bank could still allow customers to make transactions.
The OJK then instructed the shareholders to solve the issues and told controlling shareholder Bosowa Corporindo to support Kookmin Bank's plan to become the controlling investor and shareholder in Bukopin. The shareholders then agreed to carry out a rights issue, which was approved by the OJK in July.
The latest approval on Wednesday also made Kookmin Bank along with Bosowa Corporindo, which maintained its 23.4 percent ownership, Bank Bukopin’s controlling shareholders.
Meanwhile, the government’s ownership in Bank Bukopin was diluted to 6.37 percent from the previous 8.92 percent and the public’s ownership was also reduced to 36.33 percent from the previous 45.69 percent.
The OJK said Kookmin Bank’s role as Bank Bukopin’s controlling shareholder could provide support for the BUKU III bank’s development and contribute to the national economic recovery effort.
Read also: Bukopin inches closer to solving liquidity problems, regaining customer trust
In a statement to the Indonesia Stock Exchange (IDX), Bukopin said the change in controlling shareholder would not affect the bank’s operational and business continuity.
“However, [the addition of Kookmin Bank as the controlling shareholder] will change our strategy and policy aimed to strengthen our performance in a sustainable manner,” Bukopin said in the statement.
Bank Bukopin’s shares, traded on the IDX with the code BBKP, had weakened 0.56 percent as of 1:24 p.m. Jakarta time on Wednesday as the benchmark, the Jakarta Composite Index (JCI) gained 0.17 percent. The stock has lost 16.28 percent of its value so far this year.
