Indonesian bank bidders whittled down to three

by Richard Kilner

Story link: Indonesian bank bidders whittled down to three

The bidders for the stake in Bank Internasional Indonesia held by Singapore state investor Temasek have been whittled down to a final trio.

Bank of China, Malaysian firm Malayan Banking Bhd and HSBC are the last bidders remaining in contention.

Temasek’s stake of 42% is valued in excess of $800m.

The stake is being sold to comply with newly introduced laws governing foreign investors controlling more than one bank in Indonesia.

Temasek also possess a controlling stake of Indonesian firm Bank Danamon.

The investor has two years to change its investment portfolio to comply with the rules, though it is keen to do so long before the end of 2010 deadline.