On 17th March 2014, the Indonesia Deposit Insurance Corporation (LPS) formally announced the specific details of its long-established plan to sell all of its shares in Mutiara Bank. LPS, holders of 99.9% of shares in Mutiara Bank, initiated the auction process earlier in the month in accordance with Article 42 of Law Number 24 of 2004 and Law Number 7 of 2009, which stipulate that banks rescued by the agency must be sold at market price six years after its bailout. 

As is detailed in the announcement, the LPS will make shares available through a strategic sale to prospective investors that meet criteria such as non-affiliation with Mutiara Bank, compliance with prevailing laws and regulations, as well as demonstrated financial capacity to meet payment obligations. The agency will accept submissions of interest from potential investors up until 4th April 2014. Interested parties would then need to register by 10th April 2014, before moving on to the next phase in which investors meeting the criteria will submit non-binding preliminary bids. To carry out this share sale, LPS has appointed PT Danareksa Sekuritas as financial advisor.

For a complete step by step overview of the LPS’ share sale process, please see Announcement PT Bank Mutiara Tbk Shares Disposal.