Bank Mandiri ready to takeover BTN

Bank Mandiri ready to takeover BTN

(FOTO ANTARA/Fanny Octavianus)

Jakarta (ANTARA News) - State Enterprises Minister Dahlan Iskan has assured PT Bank Mandiri Tbk.s readiness to takeover PT Bank Tabungan Negara Tbk. (BTN).

"Bank Mandiri is ready and has the capacity to take over BTN, which will later be made into its subsidiary to handle housing solutions for the people," he explained after a board meeting with his ministry here on Thursday.

The acquisition is expected to be decided upon during a special meeting of BTN shareholders on May 21.

Dahlan added that the mechanism for the takeover of 60.14 percent BTN shares has not yet been decided as a series of study has yet to be carried out.

"In essence any option available is being studied to get the best one," he pointed out.

Dahlan added that every effort will be taken to realize the plan. "Asking for a permit from the finance ministry, the House of Representatives; anything to realize the plan would be done," he reiterated.

In his letter on April 11, to the President Director of BTN, he has requested for a special meeting of shareholders to ask for a principle agreement to change the companys shareholders.

Dahlan explained that minimally there are three reasons for releasing BTN shares to Mandiri.

Firstly, it is for helping BTN that is no longer capable of meeting public demand for housing.

"Frankly speaking, housing needs have now reached 1.5 million units a year. BTN is unable to meet it," he explained.

Secondly, BTN will be made into the biggest bank for housing finance in the country and thirdly, the takeover is aimed to make Bank Mandiri the biggest bank in the ASEAN region.

"So, BTN will not be closed but will still be developed as Bank Mandiris subsidiary," he clarified.

Dahlan admitted that he hoped Mandiri would later compete with foreign banks when the ASEAN Economic Community starts in 2015.

He explained that Indonesian banks have been smaller than banks of Singapore, Malaysia and Thailand.

"With the merger, Mandiri will minimally be able to beat the biggest Malaysian bank," he asserted.

He pointed out that if the acquisition of BTN was realized, Bank Mandiri would become bigger than Malaysian and Thai banks in ASEAN and would only be beaten by the Singapore bank.

Reporting by Royke Sinaga