Cathay acquires 15% Bank Mayapada shares for Rp1.7 trillion

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JAKARTA (TheInsiderStories) – Cathay Financial Holding Co Ltd become one of the controlling shareholder in PT Bank Mayapada International Tbk (IDX: MAYA) after acquiring 15 percent or 649.97 million shares of the bank with total valued Rp1.7 trillion in Oct. 18. The bank also announced that it will issue  614.92 million new shares with price Rp1,630 a share to raise Rp1.00 trillion in Nov.14.

Based on prospectus, the bank is targeting to get effective from Financial Service Agency on Oct. 31, cum-right Nov. 7, ex-right Nov. 8, distribution on Nov. 11 and to be list at Indonesia Stock Exchange on Nov. 14.

Hariyono Tjahjarijadi, Managing Director of Bank Mayapada International acknowledges, these transactions take place between the shareholders in the bank, without elaborating, and that there may be a change in the composition of the changes in shareholding, Kontan reported.

Currently, a shareholder in the bank consists of Mayapada Karunia amounting to 26.42 percent, Cathay Life Insurance Co. Ltd. as much as 24.90 percent, Brilliant Bazaar Pte. Ltd. amounted to 15.90 percent, Galasco Investments Limited 10.00 percent, Unity Rise Limited at 7.31 percent, and the public at 15.73 percent.

Hariyono added, it also will make the issuance of new shares with Preemptive Rights. The Taipan Tahir-owned bank in the business would like to expand to other areas after becoming bank BOOK 3.

Currently, the Bank is conducting the rights issue process, without elaborating. Hopefully, the company will conduct a rights issue in November 2016 with a target to raise funds amounting to Rp 1 trillion so that the capital will rise to above Rp 5 trillion. Currently, the core capital still amounted to Rp 4.08 trillion as of June 2016.

If Cathay Financial Holding Co. Ltd. officially became the controlling shareholder, then the business will be enlarged. In 2017,  Mayapada Bank expects to book loan extension and third party funds (DPK) to grow 11 to 13 percent respectively or the same as in 2016.

For profit, Hariyono says the bank’s profit is expected to still grow but growth can not be significant because most of capital will be set aside for backup. Bank Mayapada aims to make a profit of less than Rp 1 trillion. (*)

 

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Source: The Insiderstories
Cathay acquires 15% Bank Mayapada shares for Rp1.7 trillion

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