BTPN 1:5 stock split approved

27/2/2011

Irvin Avriano A.

BTPN 1:5 stock split approved

JAKARTA: PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) gets approval from its shareholders to split its stock nominal price with 1:5 ratio, or from IDR100 to IDR20.

"We hope the action can make our shares liquidity jacked up in the stock market, and its price reachable for retail investors," said Jerry Ng, BTPN President Director, in an information disclosure to Indonesia Stock Exchange (IDX/Bursa Efek Indonesia/BEI) last weekend.

The approval pocketed after an extraordinary general meeting of shareholders (EGM) was held last weekend. The stock split also rocketed its shares numbers from previously 1.13 billion shares to 5.66 bio shares.

In the EGM the company also appoint a new director, Asep Nurdin Alfallah. Previously, Asep served as BTPN Head of Regional Office of Eastern Indonesia.

The company also predicts that micro lending company reached IDR6-7 trillion this year, up from the position at the end of last year IDR4 trillion.

Deputy President Director BTPN Ongki Wanadjati Dana said the private bank that focus on retirees intends to develop micro-financing beyond the trade sector, after getting fresh funds from rights issue.

"We wanted to add to other micro sector, such as the agricultural sector and other micro sectors."

He said the provision of micro credit in the past year it has its share of 25% compared with total corporate lending.

In a rights issue action that began last year, the company obtain fresh funds amounting to IDR1.3 trillion, with the rights price of IDR7,000. The corporate action also makes the portion of ownership in the controlling shareholder, the Texas Pacific Group (TPG Group), reduced.

"The decline in the portion of it is on purpose, to be more liquid market in the public shareholders and perhaps later there are tax incentives that we can accept."

He estimated the portion of the firm TPG Group, through PT TPG Nusantara, declined to around 60% from the previous position about 70%.

TPG Group became the controlling institution of BTPN since 2007 when the company bought shares of PT Recapital Advisors, Fuad Hasan Masyhur, PT Danatama Makmur, and PT Bakrie Capital Indonesia through TPG Sari Nusantara.

Based on the bank financial statements, the TPG Nusantara has about 71.61% stake in BTPN, then there is PT Multi Kencana Mulia with 0.88% portion, and the rest of 27.53% controlled by the public.

Company share prices corrected IDR300 or 2.24% to as low IDR11,950 on the stock market closing today. Price formed a market capitalization of IDR13.53 trillion.