Plan on BTN acquisition cancelled

Jakarta (ANTARA News) - PT Bank Mandiris plan to acquire PT Bank Tabungan Negara (BTN) was confirmed as cancelled as the two state lenders had not scheduled it in the agenda of the upcoming shareholders extraordinary general meeting (RUPSLB).

The shareholders just decided on a single agenda in the Mandiri and BTN RUPSLB scheduled to be held on May 21, namely the change of the managerial structures of the companies, according to a statement issued in the Indonesian Stock Exchange (BEI)s information transparency event.

Deputy Minister of State Enterprises Gatot Trihargo previously indicated the cancellation of the BTN acquisition plan.

The cancellation will be announced in the media, Gatot Trihargo said on Monday after summoning Bank Mandiris President Director Budi Gunadi and the President Director of PT BTN Maryono.

"This is sensitive, I cant give further details. Just wait for the announcement in the media on Tuesday," the deputy minister said.

State Enterprises Minister Dahlan Iskan previously said Bank Mandiri was ready to takeover 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 said after a board meeting with his ministry on April 17.

The plan is to help BTN, which is no longer capable of meeting public demand for housing, he said, explaining the reasons for the BTN acquisition plan. "Frankly speaking, housing needs have now reached 1.5 million units a year. BTN is unable to meet it," he added.

Also, BTN will become the largest bank for housing finance in the country and the takeover is aimed to make Bank Mandiri the largest bank in the ASEAN region.

Cabinet Secretary Dipo Alam, however, said President Susilo Bambang Yudhoyono asked for the cancellation of the plan because it had the potential of having a wide-ranging impact prior to the presidential elections scheduled to be held on July 9, 2014.(*)