BCA signs deal for UIB sharia takeover

Publicly listed PT Bank Central Asia (BCA), the nation's second largest lender, announced Tuesday a deal to acquire PT United International Bank (UIB) to help expand its sharia business.

The bank said it had inked a sale and purchase agreement to acquire a 100 percent stake in UIB, which is owned by the Tjahyadikarta family.

Under the deal, the takeover will be worth about Rp 242 billion (US$24.2 million), BCA said in a statement.

BCA plans for the whole purchasing process to be completed in early 2009, after the company receives approvals from the shareholders and the central bank.

The bank's next step will be to convert UIB into a sharia bank, BCA said.

The conversion process will be done after completing the acquisition process, which will need at least one year.

BCA has more than seven million accounts and owns the central bank's certificate worth Rp 26.8 trillion. It currently has 815 branch offices.

UIB is a national private bank with assets valued at Rp 665.7 billion at the end of June 2008, a credit portfolio of Rp 462.2 billion and third party funds of Rp 553.6 billion. -

Source : Jakarta Post