Indonesia’s Saratoga Capital in the lead for Bank Bukopin stake - report

According to the Wall Street Journal, Saratoga has offered IDR1,180 to IDR1,460 (12 to 15 cents) a share for the stake in the commercial bank. The final price will be determined after completing due diligence with Saratoga buying the stake in partnership with provincial governments.

The sale could raise at least $410 million for the two state-run labor groups that own it - 31.7% is held by Kopelindo, a cooperative of the employees of state-owned food logistics agency Bulog, and 9.7% by Yabinstra, a foundation owned by Bulog employees.

The Indonesian government owns 13.04% of the bank and has appointed state-owned lender PT Bank Rakyat Indonesia to bid for Bukopin's shares. Bank Rakyat's current offer is IDR900 a share and may be revised after completing due diligence.

Bukopin filed a 2012 net profit of IDR834.31 billion, up 12% from IDR743.94 billion a year earlier. It ranks 16th among Indonesian banks in term of assets, and caters mostly to small and medium-size enterprises.

Indonesian banks have attracted investor interest due to the country's strong economic growth. Last month it was reported Japanese banks Mitsubishi UFJ, Mizuho and Sumitomo Mitsui were among potential suitors approaching TPG and Northstar Pacific Partners with a view to acquiring their stake in Indonesia's Bank Tabungan Pensiunan Nasional (BTPN).

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• Topics
• Southeast Asia
• Financials
• Indonesia
• Saratoga Capital Group
• Financial Services