Aug 23 (Reuters) – PT Bank Rakyat Indonesia (BRI) (BBRI.JK), Indonesia’s second-largest lender, said on Monday it plans to acquire Bank Bukopin (BBKP.JK) after it completes the purchase of small plantation lender PT Bank Agroniaga (AGRO.JK).
Bank Bukopin, a mid-sized lender, has a stock market value of about $440 million. “The acquisition of Bukopin will be for more than 51 percent (stake). It will be done after the acquisition of Bank Agro finishes in the fourth quarter,” said BRI’s president director, Sofyan Basir, adding that BRI saw synergies between the two smaller banks in terms of lending to the plantation sector.
BRI has allocated between 1-2 trillion rupiah ($111.5 million to $223 million) for the acquisition of the two banks, he said. The bank also plans a stock split in the fourth quarter if its share price reaches 10,000 rupiah/share.
BRI shares traded at 9,450 rupiah, down 1.56 percent, by 15:34 (0834 GMT), while Bank Bukopin shares were down 1.54 percent at 640 rupiah.
Earlier this month, Bukopin said it had got government approval to raise about 800 billion rupiah ($89.18 million) in a rights issue this year. [ID:nJKB003859] (Reporting by Fathiya Dahrul; Editing by Sara Webb)
