BRI buy shares og Bank Agro more than 70%

The acquisition scheme of PT Bank Agroniaga Tbk by PT Bank Rakyat Indonesia Tbk (BRI) is hindered by the point of the number of the acquired shares.

The negotiation on the acquisition portion was reached last week at 70 percent. But it was dropped after BRI missed the calculation of warrant composition in the acquisition here.

If the acquisition is deal, BRI shares at Bank Agro would be diluted as the warrant portion is 502.57 million as from 3.42 billion shares.

The I series warrant was issued in the III rights issue last year with 1.01 billion shares. The warrant exchange process is effectively from this month to May 2011.

BRI does not want its shares to be diluted following the warrant exchange. Thus, the state bank asked for recalculation of stock portion prior to acquisition.
BRI should buy above 70 percent is they don't want their shares to be diluted below the figure. So, it must be higher than 70 percent. if it remains 70 percent , there will be such valuation," he said. Last year the bank recorded IDR2.19 billion profits as form IDR3.83 billion losses in the previous period.