JAKARTA (Yosefardi) – The Financial Services Authority (OJK) has approved Japan-based investment company T Trust Co Ltd to acquire PT Bank Mutiara Tbk (BCIC) after passing the fit and proper test. The Indonesian Deposit Insurance Agency (LPS) had received approval letter from OJK on Monday (November 10).
J Trust Co Ltd has on September 12, 2014 signed a conditional share sale and purchase agreement governing the transaction, exempted from the 40% cap on foreign ownership in commercial banks.
LPS has the right to sell all of its interest in Bank Mutiara to J Trust Co Ltd under this exemption. LPS expects the buyer to recover the total bailout cost of Bank Mutiara of around Rp8 trillion or about US$680 million.
BCIC suffered loss of Rp223.8 billion in first nine months of 2014. The bank booked net interest income of Rp31.2 billion, compared to Rp213.2 billion in the same period of 2013.
Its assets totaled Rp12.6 trillion, of which credit amounted Rp8.2 trillion. While liability totaled Rp11.47 trillion of which third party funds accounted for Rp10.8 trillion.