Jacking Up Niaga's Share Price

In the aftermath of the failed divestment, Bank Niaga shares will first be sold on the stock exchange and only then offered to strategic investors. The intention is to get a higher price.

June 18, 2002

ALTHOUGH the Indonesian Bank Restructuring Agency (IBRA) makes plans, it is the market that decides. For example, IBRA was targeting to sell off Bank Niaga shares at between Rp70 and Rp100 per share, but it was out of luck because the two bidders (Bank Panin Tbk and Bank ANZ as well as Commerce Asset Holding from Malaysia) were only prepared to offer between Rp20 and Rp30 per share. The excuse given for the divestment of the 51 percent share

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