Thursday, April 22, 2010

BRI delay the acquisition Bank Agro

Acquisition plan of PT Bank Agroniaga Tbk by PT Bank Rakyat Indonesia (BRI) Tbk is delayed from the initial target of May 2010 given that the pricing negotiation has not reached deal.
there is no pricing deal from both parties despite several negotiations.
BRI has offered Bank Agro price with a par value of IDR110 and Bank Agro shareholders called for the pricing hike. Bahan Securities serves as the finance advisor to BRI in this transaction and Bank Agro is assisted by PT OSK Nusadana Securities Indonesia.
Based on data quarter III/ 2009, BRI offering to Bank Agro was IDR110 per share unit referring to the price to earning ratio (PER) of 1.5 times.
However, if uses data 2009, the stock price of Bank Agro could reach IDR150 upon reference the same PER. Noting the 2009 finance statement, the book value of Bank Agro stood at IDR102 per share unit or higher than the IDR73 in quarter III/2009. Formerly, BRI has plan for seeking approval from the general meeting of shareholders (GMS) in May.
Now, the acquisition process of Bank Agro is targeted to accomplish by quarter III/2010 as from May 2010. But the price deal is expected to accomplish next month so as to be continued with license proposal to the central bank.

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