CORPORATE: DBS takes DANAMON U.S. $ 3.2 billion

Largest bank in Southeast Asia based in Singapore's DBS will today announce the acquisition of U.S. $ 3.2 billion, equivalent to 68% of the total 6.45 billion shares in Bank Danamon Financial Asia.

Acquisition announcement will also be the first big deal was made by the Chief Executive Piyush Gupta DBS Group held at the Ritz Carlton Hotel in Kuningan, Jakarta, as quoted by Times of India, Gupta is known to have been in Jakarta since last weekend.
Bank Danamon Indonesia was established in 1956 under the name PT Bank Kopra Indonesia. After two decades later, the bank's name changed to Bank Danamon Indonesia and became the first bank that pioneered the exchange of foreign currencies and stocks began to record since 1989.

In 1997, Danamon experienced liquidity problems and included in the supervision of National Bank Restructuring Agency (IBRA) as the bank is taken over (BTO), restructured and taken to a consortium of Asia Financial Indonesia in 2003 valued at U.S. $ 321 million, equivalent to Rp 3.08 trillion .

Asia Financial consortium controlled by Temasek Holdings Ltd through its subsidiary Financial Holdings Pte Ltd, while Temasek has a 29% stake in DBS. The entry of DBS to get rid of other enthusiasts, such as Bank of China to Standard Chartered.
DBS Group Holdings took over 100% shares of Fullerton Financial Holdings Pte. Ltd. in Asia Financial Indonesia Pte. Ltd., Owner of 67.37% stake in PT Bank Danamon Indonesia Tbk.

Value of the transaction, an official statement quoted DBS Monday, April 2, 2012, pegged Sin $ 6.2 billion or U.S. $ 4.9 billion, equivalent to Rp45, 2 trillion.This transaction is affiliated transactions as well as DBS and Fullterton financial SOEs controlled by the Singapore Government's Temasek Holdings.

There has been no statement from Bank Indonesia on this transaction. Danamon is a bank in Indonesia by mid-3000's branches and 6 million customers, while DBS is Singapore's largest bank.

Bank Danamon long journey

Financial Sector Policy Committee in May 2003 in the Ministry of Finance (now the Ministry of Finance). At that time, I along with some friends to cover meetings of the Financial Sector Policy Committee (KKSK) that discussed the progress of debt restructuring and debt handling high profile debtors are handled by the National Bank Restructuring Agency (IBRA).
Incidentally KKSK before the meeting, I met with Chairman of IBRA Syafruddin Temenggung Arsyad and ask when the divestment of Bank Danamon money to the account of IBRA. He went on to show proof of facsimile transfer money into accounts at Citibank of IBRA's divestment proceeds 51% stake in Bank Danamon.

At that time, IBRA has set Asia Finance consortium owned by Temasek Holdings and Deutsche Bank as the winner of divesting 51% stake in Bank Danamon Indonesia beat Bhakti Capital Consortium and the Consortium of Bank Artha Graha. Bank Artha Graha consortium disqualified due to submit bids without a guarantee (bid bond) worth U.S. $ 15 million.

Financial Asia-member consortium with Temasek Holdings and the remaining 85% ownership are Deutsche Bank with a portion of 15%. The price offered by Asia Financial is Rp1.202 per share beat Bhakti Capital consortium bidding for Rp1.025 per share.

Owned Usman Admadjaja

Quote of the Asia Financial 1.27 times book value, reflecting the Bank Danamon per December 31, 2002 which was audited. Bank Danamon was forced to enter treatment because the owner Usman Admadjaja IBRA was unable to pay off the funding of the Bank Indonesia Liquidity Assistance (BLBI) and government bonds valued at Rp28, 8 trillion.

Having calculated the number of other transactions, men born in Tanjungkarang, Lampung, in 1947 it is required to pay to IBRA valued at Rp12, 5 billion. Temasek subsequently Bank Danamon have control over the number of names out of the business entity. Once led by Francis Andrew Rozario, continues to Sebastian Paredes and then Henry Ho Hon Cheong.

One of the important decisions made by Bank Danamon is buying Multifinance Tbk PT Adira and into the microcredit market through Danamon Savings and Loan. Acquisition of Adira done in stages and completed in the last year that 95% of Bank Danamon master of finance companies is # The preparation of the divestment Danamon # Henry Ho formally entered into Bank Danamon on 29 April 2010 after Sebastian Paredes resigned in January.

Once of the BII, Henry Ho stopped by Temasek Holdings and served as Managing Director. Previously, Henry Ho is a former Managing Director of PT Bank International Indonesia Tbk replacing Sigit Pramono (who later served as Managing Director of PT Bank Negara Indonesia Tbk) and was instrumental in helping resolve the bank's sale to Malayan Banking Berhad in 2008.

Malayan Banking Berhad to buy 56.8% stake in PT Bank International Indonesia Tbk owned by a consortium of Sorak Financial valued at Rp13, 65 trillion. The consortium is owned by Fullerton Financial Holdings (a subsidiary of Temasek) and Kookmin Bank, South Korea.
Henry Ho influx has led to speculation in a number of market participants, when Bank Danamon will be sold. It turned out that the speculation is true. After preceded a limited stock offering (rights issue) Bank Danamon worth Rp 4, 9 billion by mid-semester II 2011, DBS Group Holdings Ltd.. earlier this week announced it has acquired all shares of Fullerton Financial Holdings in Asia Financial (Indonesia) Pte. Ltd.. Asia Financial has 6.45 billion shares, equivalent to 67.37% ownership stake in Bank Danamon.

Agreed price is Rp45, 2 trillion with 7,000 per share price agreement. Upon completion of this transaction, DBS will hold a tender offer in accordance with the Capital Market Supervisory Agency and Financial Institution Supervisory Agency (Bapepam-LK) No IX.HI for all outstanding shares in Bank Danamon stock market prices at the level of 7,000.

That price is a 56.3% premium over the volume weighted average price in the last month at the level of Rp4.480 per share. Furthermore, DBS will issue 439 million new shares to Temasek at the level of price S $ 14.07 per share amounting to S $ 6.2 billion. This transaction will increase Temasek's shareholding in DBS from the original 29% to 40%. Can be called nothing has changed with the controlling shareholder of the entity, just changed its name but still behind Temasek. (Munir.haikal @ bisnis.co.id / source bisnis.com)