Bank Rakyat takeover of Bank Agro nears

$44mln acquisition in final stages after administrative problems have delayed acquisition plan due last year.

State-owned lender PT Bank Rakyat Indonesia (BRI) is in the final stages of realizing its acquisition plan of 80 percent shares in PT Bank Agroniaga Tbk (AGRO), which is worth around Rp 300-400 billion ($33.33-44.44 million), said Bank Rakyat president director Sofyan Basir.

"We will announce the complete information on the acquisition plan after conducting an extraordinary shareholders meeting in August," Sofyan said after a meeting with central bank officials in Jakarta on Monday.

The state-bank has been announcing the acquisition plan from last year, but the plan has been delayed several times due to administrative problems.

"We have filed the request to acquire Bank Agro to the central bank and are still waiting for its permission," said Sofyan, estimating the acquisition would take place in the third quarter.

State-owned Enterprises Minister Mustafa Abubakar has previously stated he allows Bank Rakyat to further process the acquisition plan, in hopes of spurring the bank's lending in the agricultural sector. Bank Agro would not change its name after the acquisition, but would focus more on the agricultural business sector, Mustafa said.

View the full story in the Jakarta Post.