Indonesian invite for Tata Steel

The Indonesian government has invited Tata Steel and Arcelor Mittal to take part in the privatisation process through which the government is selling 35 per cent in PT Krakatau Steel.

Confirming this, sources said talks are at a preliminary stage. A spokesperson for Tata Steel, the world’s sixth largest steel maker, said the company has not approached anyone to acquire a stake in Krakatau Steel.

The broad contours of the plan suggest that the government will dilute another 30 per cent through a public offer later.

The proposed privatisation plan is a part of the government’s aim to scale up the country’s annual steel production capacity to 10 million tonne in three years from 6 million tonne now. For this, the government wants Krakatau to increase its capacity to 4 million tonne from the existing 2.5 million .

(Source: Business Standard)

BoI acquires 76 per cent stake in Indonesian bank

Public sector lender Bank of India (BoI) on Friday said it has acquired 76 per cent stake in Indonesia- based PT Bank Swadesi for an undisclosed amount.

This is the first overseas acquisition by BoI, which has a representative office in Jakarta, and is expected to enhance its international operations in Indonesia. Bank Swadesi is a mid-sized bank, operating in Indonesia for the last 38 years and has 16 outlets. Bank Swadesi has a licence for forex business and is listed on the Jakarta Stock Exchange. Earlier in December 11, 2006, BoI had said that it would acquire 76 per cent stake PT Bank Swadesi Tbk and had signed a conditional sale-purchase agreement for this purpose with majority shareholders of the Indonesian firm.

This would be the second acquisition of a bank in Indonesia by an Indian lender after State Bank of India bought 76 per cent stake in Bank Indomonex. - PTI