||Asean Affairs 5 June 2013
LPS resumes offering for Bank Mutiara
The Deposit Insurance Corporation (LPS) has now resumed the sale of Bank Mutiara, hoping that this time it will attract new investors that can acquire the lender's shares for the right price.
"The LPS has opened again the divesting process of Bank Mutiara, utilizing the remaining time left in 2013, with a minimum of Rp 6.7 trillion remaining as a rescue price for the divestment," LPS chairman Mirza Adityaswara said on Sunday evening.
Statement of interest from prospective investors should be informed to the LPS before June 24, while the required paperwork should be submitted on July 1 at the latest, he added.
All shares of any bank rescued by the LPS, including Bank Mutiara, must be sold at their purchase price within three years of the rescue as required by the 2004 LPS Law. The LPS rescued Bank Mutiara -- formerly known as Bank Century -- at the height of the 2008 financial crisis at Rp 6.7 trillion, on the back of fears that the collapse of the bank could trigger a banking rush in the economy.
The LPS currently owns 99.9 percent of shares in Bank Mutiara. By referring to the law, Bank Mutiara can be sold to the highest bidder if no deal is made by next year.