State-owned largest bank PT Bank Mandiri Tbk (BMRI) has proposed 10%-15% of rights issue to the government as controlling share holder.
If the government gave a green light for the proposed, Bank Mandiri's free float would surpass 40% stakes, enabling it to enjoy lower income tax by 5%. Considering the proposed rights issue, Bank Mandiri could issue 2.09 billion-3.14 billion shares into the market.
"We have no idea how much new shares which will be approved by the government," said Bank Mandiri Finance Director Pahana N. Mansury quoted by Kontan daily today.
Secretary of State-Owned Minister M. Said Didu said the rights issue have been approved by Finance Minister Agus Martowardojo as one of Privatization Committee's members.
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