Strategic Interest in Mutiara Bank Formally Communicated
JAKARTA and SINGAPORE, Feb. 6, 2012 /PRNewswire-Asia/ --
Key Messages:
-- 100% Cash Acquisition With or Without Well-Capitalized Bank
Partner
-- Further Financial Support to Boost Capital Ratios to Industry
Standards
-- Independent and Growth Enhancing Solution With No Political
Agenda
-- Commend Mutiara and LPS on Advancements and Restoring Trust
-- Protracted Process Risks Destroying Progress To-Date
Yawadwipa Companies ("Yawadwipa" or the "Company") announced today that it has formally communicated to the financial advisors of PT Bank Mutiara Tbk ("Mutiara" or the "Bank"), its strategic interest in an acquisition of the Bank from the Indonesian Deposit Insurance Agency ("LPS"). As stipulated by existing law (Article 42 of Law No. 24/2004), the purchase price currently may be no less than LPS's 2008 temporary capital placement into Mutiara, which was approximately Rp 6.7 trillion, or at spot exchange rates, roughly $750 million USD (the "Rescue Price"). Whether in partnership with a well-capitalized institution committed to Indonesia or on a standalone basis, Yawadwipa is prepared to assess the merits of acquiring 100% of Mutiara for the Rescue Price while also providing a direct equity injection to improve capital ratios and accelerate growth, subject to due diligence and other customary process matters. Yawadwipa looks forward to discussing the strategic interest in the Bank with a variety of constituencies in the public and private sectors.
As was outlined upon its formation, Yawadwipa's overarching mission is to develop the leading merchant bank for Indonesia and do so through a collaborative and partnership approach. To aspire to be the most integral independent domestic financial services entity to the country comes with it substantial responsibility and a long-term approach to any business endeavor. While a profit making business with a fiduciary obligation to deliver the highest quality earnings to its investor set, the Company fully accepts and embraces its duty to play an active role in helping facilitate public sector initiatives and advance social causes. Its past advice on policy matters, continuous interaction with leading decision makers and its formalized agreement to contribute 10% of its profits to local charitable and similar efforts, are evidence of this commitment.
Yawadwipa believes the Mutiara platform consists of many attractive businesses and has proven itself an innovator while restoring trust over the past three years.