Al Barakah Interested in Panin Life Shares

VIVAnews - Middle East financial institution was reported as intending to acquire 30 percent of PT Panin Life Tbk. (PNLF)'s shares.

An anonymous VIVAnews source mentioned that the foreign institution wanted to penetrate into the sharia insurance market in Indonesia by teaming up with a company. It was due to the fact that Indonesia is a country with largest Muslim population in the world, which is potential for growing the shariah insurance. In addition, the issuer is also aiming at initiating a sharia business in the country.

"The said institution is Al-Barakah," said the anonymous source on Wednesday, March 4.

Vice President Director of Panin Life, Tri Djoko Santoso, said the company is targeting to start sharia banking find a strategic partner.

"But we have not yet decided which party that we will invite to collaborate with in running the business," he told VIVAnews on Wednesday, March 4.

Per January 31 2009, Mellon S/A Cundill Recovery FD owned PNLF stock by 10 percent; PT Panin Insurance Tbk. by 49 percent; and UBS Ag London Branch A/C IPB Segregated by eight percent.

According to David Cornelis, a capital market analyst, the plan of the Middle East investor to invest in Indonesia will have a positive impact. There will be fresh fund for the company and it will support the issuer's plan for a long-term expansion, which will boost its income.

"The stock price will also respond positively over the news," Cornelis said.

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Translated by: Ariyantri E. Tarman