Bank Negara Indonesia targets acquisition of Bahana

Bank Negara Indonesia plans to sell Rp 1.2 trillion or $126 million of recapitalized bonds to finance the acquisition of Bahana Securities.

The lender has sent a letter notifying the State Enterprises Ministry of its plan to acquire the stake in Bahana, according to BNI president director Gatot Suwondo.

BNI had Rp 17 trillion of recapitalized bonds in its books.

Gatot said that using some recapitalized bonds would help reduce the government’s debt, suggesting that the government should welcome the move.

BNI's rival Bank Rakyat Indonesia also intends to to acquire control of debt-ridden Bahana.

BRI president director Sofyan Basir said last week that the lender was scouting the market to buy a brokerage company. He did not name any target, but market speculation suggests BRI has been seeking a stake of Bahana.

Bahana Securities, a unit of Bahana Pembinaan Usaha Indonesia, has been in limbo since it failed to sell its stake in Garuda Indonesia during the national airline’s capital debut last year.

For more.