Unable to attract investors, Bank of India failed to sell 76% of its shares
JAKARTA. PT Bank of India Indonesia Tbk (BSWD) fails to sell the majority shares of 76%, as there had been no new investors stepping in as the buyer by the time the General Shareholders Meeting was conducted.
Primasura Pandu Dwipanata, Independent Director of Bank of India Indonesia, explained that several potential investors have been undergoing the negotiation process. However, by the time the shareholders meeting was conducted, they could not reach any agreements. “There were some potential investors, but they did not bid anything. They’re stuck in the due diligence process and the approaching stage, negotiating price yet not putting any bids in until the shareholders meeting takes place. So, there was nothing that we could do at that time,” he explained in Jakarta yesterday (9/12).
Dwipanata stated that with this unsuccessful attempt to gain new investors, the company would arrange a capital increase next year through a rights issue. This step is chosen to meet the minimum requirement of core capital of IDR 3 trillion by the end of 2022.
On August 2021, Bank of India Indonesia announced the plan of divesting its entire portion in Bank of India of 76% in its information disclosure. It was equal to 76% of the total traded shares in the stock exchange, amounting to 1.05 billion shares. (AM/ZH)