After the merger, public ownership in BRI Syariah (BRIS) will be diluted

Reporter: Fencing Septiadi | Editor: Anna Suci Perwitasari

KONTAN.CO.ID – JAKARTA. Several analysts confirm that the public ownership of PT Bank BRI Syariah Tbk (BRIS) will be diluted according to the merger plan with PT Bank Mandiri Syariah and PT Bank BNI Syariah.

“If you look at the current BRIS statutes, the participation of public investors will certainly be diluted, so before the merger, approval from the authorities is required,” Lanjar Nafi, an analyst at Reliance Sekuritas Indonesia told Kontan. co.id, on Tuesday (10/13).

In fact, Nafi said that BRI Syariah could change the company’s bylaws to avoid further diluting the public portion. Or the two banks to be merged, namely BNI Syariah and Mandiri Syariah, can take the public part to enter BRI Syariah.

Read also: Could the merger of BUMN sharia banks be hampered by business competition regulations?

However, Nafi said it is quite difficult to figure this out, especially if there is an increase or decrease in equity ownership. So that public property is diluted.

Meanwhile, Binaartha Sekuritas analyst Nafan Aji said that while it has high dilution potential, public investors can get compensation for the rise in BRIS share price.

In trading on Tuesday (10/13), BRIS shares were stagnant automatic rejection up (ARA) because it has risen 25%. The BRIS transaction was opened at a price of Rp 920 and closed at a price of Rp 1.125 per share.

“However, the next increase in the share price will depend on the extent to which the issuer can fundamentally improve its performance,” Nafan said.

Earlier, PT Bank Mandiri Tbk (BMRI) deputy director Hery Gunardi and Project Management Office team leader Hery Gunardi said that the merged bank could even enter the top ten Islamic banks with the largest world market capitalization.

“The purpose of the merger is to have a large and globally competitive Islamic bank. The merged bank can also enter the top 10 largest banks based on world market capitalization,” Hery said during an online press conference, the Tuesday (10/13).

Read also: OJK Supports Proposed Merger of Sharia Banks BUMN

With the goal of completing the merger by February 2021, Hery estimates that the total assets of the merged bank will reach Rs 220 trillion to Rs 225 trillion with a profit of Rs 2.2 trillion. Meanwhile, under conservative assumptions, until 2025, the merged bank assets could reach Rs 390 trillion with funding of Rs 272 trillion and deposits of Rs 335 trillion.

Unfortunately, Hery still refused to reveal the plans for the merger. He only said that the parties will officially announce the corresponding prospectus on October 20, 2020.