Will Bank Banten Agrees on Merger with BJB?

Summary

PT Bank Pembangunan Daerah Banten Tbk (BEKS), or Bank Banten, ensures that the plan to increase capital will continue. Bank Banten President Director Fahmi Bagus Mahesa said that the company would conduct a rights issue to raise capital. The corporate action also was a follow-up to the approval from the Banten Provincial People's Representative Council (DPRD) over the Banten Provincial Government's (Pemprov) plan to raise additional capital of Rp 1.55 trillion.

In addition to raising capital from the Banten Provincial Government, Bank Banten has also confirmed that it would raise additional capital from other investors. "We would obtain fresh funds from domestic and foreign investors," said Fahmi. Bank Banten will ask for shareholders' approval to carry out a merger of share values ​​or reverse stock at the Extraordinary General Meeting of Shareholders (EGMS) to be held on October 2, 2020. Through a reverse stock with a 10: 1 ratio, the nominal value will change from Rp 100 to Rp 1,000 per share. For series B shares, the nominal would increase to Rp 180 from only Rp 18 per share. The reverse stock plan is carried out to meet the requirements of additional capital.

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