Singapore's UOB Seeks to Delist Indonesian Unit
Singapore's United Overseas Bank said on Wednesday it had proposed to delist its 61.1 percent-owned Indonesian lender UOB Buana, and planned to buy the remaining shares that it does not own.
PT Bank UOB Buana has a stock market value of $849 million, Reuters data shows, which means UOB could potentially pay around $330 million for the remaining shares.
"If approved, UOBII will undertake a delisting tender offer for the remaining shares in UOB Buana not owned by it, in accordance with the prevailing rules, regulations and policy of Bapepam-LK and the Indonesia Stock Exchange," Singapore's second-biggest lender by assets said in a statement
In January, PT Bank Buana said that its parent planned to set up a holding firm for its two Indonesian units -- Buana and its subsidiary UOB Indonesia -- to meet an Indonesian ruling limiting control to more than one bank.
Under Indonesia's central bank ruling, investors with controlling stakes in more than one bank either have to merge them, set up a holding company, or divest shares by 2010, as part of efforts to consolidate the banking industry.
Indonesia expects the ruling to help consolidate the country's 130 banks, which have total assets of around $200 billion.