CIMB prepared IDR7.1 trillion for Niaga-Lippo merger

Khazanah Nasional Berhad's subsidiary, CIMB Group, prepared IDR7.1 trillion fund for the merger and voluntary stand by facility of Bank Niaga and Bank Lippo.
The two major banks merger leads the CIMB Group as the major shareholder of the top five leading bank in Indonesia with a total of IDR95.2 trillion assets and 11,000 employees at 650 branch offices nationwide.
CIMB Group allotted IDR1.1 trillion to fund the establishment of PT Bank CIMB Niaga, particularly covering the administrative cost such as structural synergy, IT development and branch office expansion.
As from the IDR6 trillion budgeted for the stand-by facility, the IDR900 billion goes to the Bank Lippo minor shareholders and IDR5.1 trillion to Bank Niaga. CIMB Group will buy 51 percent of Bank Lippo shares owned by Santubong Ventures, the Khazanah NAsional subsidiary, worth by IDR5.9 trillion (RM2.1 billion).
In compensation, Khazanah will have 207.1 million new shares of Bumiputera Commerce Holdings Bhd (BCHD) owned by the CIMB Group. All Bank Lippo shares will be swapped into Bank Niaga shares with Bank Lippo 2.8 ratio. The CIMB Group entered Indonesia in 2002 acquiring 51 percent of Bank Niaga shares and Khazanah acquired 87.5 percent of Bank Lippo shares I 2005.
Following the merger and take over, the CIMB Group and Khazanah will have 58.7 percent and 18.7 percent of the merged banks or the CIMB Niaga shares.
The cost for the merger will be gradually paid by the CIMB Group internal fund as 30 percent will be paid in 2008, 28 percent in 2009, and 18 percent in 2010