UPDATE:Bank Danamon Gets Pledges For 90% Of Rts Issue-Sources
March 05 2009 - 12:26AM
Dow Jones News
PT Bank Danamon Indonesia's (BDMN.JK) existing shareholders have
already made pledges for 90% of the lender's IDR4 trillion (US$335
million) rights issue, people close to the situation said
Thursday.
Subscriptions to the rights offer begin April 7 and end April
14.
One person said a number of parties that don't have any holdings
in the bank have expressed interest in purchasing the new shares by
sub-underwriting the deal.
He declined to comment on the identity of the parties, but said
they include other banks, brokers and hedge funds. Sub-underwriters
underwrite the risk taken on by underwriters.
Singapore's Temasek Holdings Pte Ltd., which owns a 67.9% stake
in Bank Danamon through wholly owned Asia Financial (Indonesia) Pte
Ltd., isn't one of the sub-underwriters, another person said.
Bank Danamon said when it launched the rights issue last month
that Asia Financial had undertaken to fully subscribe to its
entitlement.
The roadshow for the deal ended Wednesday, after touring
Jakarta, Hong Kong, Singapore, London and the Netherlands.
Indonesia's fifth-largest lender by assets said last month it
will issue shareholders with 68 preemptive rights for every 100
shares held at IDR1,200 each, or a discount of 47% to the stock's
price of IDR2,250 before the announcement.
Proceeds from the rights issue will strengthen the bank's
capital position and support growth in its network. It will boost
the lender's Tier 1 ratio - a measure of a bank's financial
strength - to 19.4% from 14.1%.
Bank Danamon's share price has traded up since the announcement,
reflecting the warm reception the rights issue has received from
investors.
At 0545 GMT, its shares were at IDR2,600.
Citigroup Inc. (C) and Morgan Stanley (MS) are underwriters on
the deal.
-By Amy Or, Dow Jones Newswires; 852-2832 2335;
amy.or@dowjones.com