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Acquisition of Bank Royal by BCA to be decided in AGM next month

13 March 2019 06:23 AM  Company: PT. Bank Central Asia Tbk[BBCA]
Rp. 26,900  +1000 (3.86%)

JAKARTA. The plan of PT Bank Central Asia Tbk (BBCA) or BCA to acquire PT Bank Royal Indonesia is ongoing and will be decided in the company's Annual General Meeting of Shareholders (AGM) on April 11, 2019.

Two sources familiar with this plan said that the discussion regarding Bank Royal's acquisition by BCA is narrowing and estimated to be completed soon. "The acquisition is in accordance with the OJK's policy that expects banking consolidation," the sources told CNBC Indonesia.

According to CNBC Indonesia reports, the corporate action plan has been discussed among Bank Royal employees.

"BCA is a public bank, so it is tied with stock market regulations. In accordance to the regulations, we have to obtain the AGM's approval before the management can provide an official explanation," he said.

BCA's AGM is scheduled on April 11, 2019. The AGM summons and agenda will be delivered by BCA on Wednesday (13/3).

Bank Royal is owned by the Soemedi family, which owns PT Master Steel Mfg. With a total asset value of Rp 941 billion as of late September 2018, Bank Royal is categorised as a small bank with total equity of Rp 334 billion and Rp 287 billion in paid-up capital. (AM/MS)

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PT. Bank Central Asia Tbk [BBCA]   Rp. 26,900   +1000 (3.86%)