JAKARTA - The Board of Commissioners of PT Bank Agris Tbk (AGRS) and PT Bank Mitraniaga Tbk have given their approval for the merger plan. The new bank from the merger will later be named Bank IBK Indonesia and will focus on the Small and Medium Enterprises (SME) segment.
"Credit products will be developed by the new bank, which will develop special loan products so that they are in line with the growth of SME, which is balanced with funding conditions," the company wrote in its press release on Tuesday (10/4).
So far, Bank Agris has focused on the MSME segment. Moreover, the controlling shareholder of the Industrial Bank of Korea (IBK) also has a similar segment in the country. IBK Indonesia even has the vision to become the number one SME Bank in Indonesia.
IBK will dominate 89.5% of IBK Indonesia's shares worth Rp 636.27 billion. Previously, IBK had a 95.8% stake in Bank Agris with a value of Rp 503.50 billion. While at Mitraniaga, IBK previously owned 71.68% of its shares, valued at Rp. 477.59 billion.
After receiving the approval of the commissioners, both Agris and Mitraniaga will also hold an EGMS on 31 May 2019. The merger process is predicted to be completed and become effective on 31 July 2019. (AM/AR)