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Bank Rakyat Indonesia plans to sell 23.25per cent stake in rights issue

JAKARTA: Indonesia's largest lender by assets, PT Bank Rakyat Indonesia said on Tuesday it will seek shareholders approval next month to conduct a rights issue that will enable the acquisition of two state firms.

BRI plans to sell a maximum 28.68 billion shares in the rights sale, or 23.25per cent of its total equity, the company said in a stock exchange filing.

The government, the controlling shareholder of BRI, will participate in the rights issue by transferring its shares in state pawnshop chain Pegadaian and micro-lending firm Permodalan Nasional Madani (PNM) to BRI, the filing said.

BRI will hold a shareholder meeting on July 22 to seek approval for the transaction.

Pricing of the shares for the rights sales was not yet announced. Shares of BRI was traded at 4,230 rupiah each on Tuesday.

Based on the companies financial positions as per March 31, the combined entity would have a total asset of 1,515 trillion rupiah (US$106.54 billion) and a combined net income of 8 trillion rupiah, the filing said.

That compared with BRI's total asset of 1,411 trillion rupiah by the end of March and 7 trillion net income.

(US$1 = 14,220.0000 rupiah)

(Reporting by Fransiska Nangoy, Gayatri Suroyo, editing by Louise Heavens)

Source: Reuters

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