Privatization Model for BNI 15% Or 40% ?

Whats privatization model for PT Bank Negara Indonesia Tbk (BNI) ?

Commission XI of the House of Representatives by informal recomended to sell maximum 15% shares of BNI.

Privatization Committee has approved the rights issue plan of the bank at the maximum of 40% shares of the bank.

The ministry projected to get IDR4 trillion from the divestment of BNI, higher than the target of IDR3.3 trillion from privatization of SOEs.

The management of BNI has offered two options. The first one is the divestment of 30%-35% shares in two steps: 15% through rights issue and the rest is through secondary offering.

By assuming that the stock price of BNI has been IDR1,400-IDR2,200, representing price to book value of 1.4-2.4 times, the bank will get IDR5.5 trillion - IDR9.3 trillion from the offering of 30% shares.

The second option is to offer 40% shares by selling 15% shares in rights issue and the rest 25% in secondary offering.