BTN TO SELL STOCK AT RP800 PER SHARE

Jakarta, Dec 4 (ANTARA) - State-owned Bank Tabungan Negara
(BTN) plans to sell its shares at the Indonesia Stock Exchange on
December 17, 2009 at a price of Rp800 per share, vice president
director Evi Firmansyah said.

She said in a press statement on Friday that the price was set through a careful process by considering various significant aspects involved.

The price was also set through a meeting between the
office of the state enterprises minister, the BTN management and
the underwriters, namely PT Mandiri Sekuritas and PT CIMB Securities
on December 3.

"The price of the BTN shares is set at Rp800 per share while the
number of shares to be issued is 2.36 billion," she said.

She said the proceeds would be used to strengthen the
company's capital for future expansion.

The number of shares to be sold is equal to 27.08 of the bank's
shares with 24.48 percent of it for the public and 2.60 percent for
the MSOP program.

The price offered is between 1.5 and 2.2 of the book value
namely between Rp750 and Rp1.100 per unit.

Sixty-percent of buyers will be local investors while the rest are
foreigners, she said.

She said she hoped the proceeds would improve the bank's
capital adequacy ratio from 15.04 percent to 27 percent.

"So, the company's capital would increase from Rp3.4 trillion to
Rp5 trillion to make the leverage for credit distribution to Rp60
trillion," she said.

She said the roadshows that had been carried out so far had
been successful not only in the country's big cities but also in
overseas cities such as Singapore, Kuala Lumpur, Hong Kong,
Frankfurt, Amsterdam, London and Edinburgh.

She said based on them it was seen that BTN shares had
attracted a big interest from foreign investors.***2***