Lippo Bank - History

History

Lippo Bank was Indonesia's 9th largest bank in Indonesia by the number of the assets. It was established in 1948 and controlled by ethnic Chinese Mochtar Riady together with the Lippo Group. Indonesia sold the stake in Bank Lippo as part of asset disposals aimed at cutting the government's budget deficit and recouping the 450 trillion rupiah it spent to bail out banks after the 1997 Asian financial crisis. Swissasia Global bought 52.1 percent of Bank Lippo in February 2004 from the Indonesian Bank Restructuring Agency for $142 million. The agency took control of Bank Lippo from its previous owners, the Riady family, after the government injected funds into the lender in 1999 to boost capital.

The family still holds a minority stake, partly through PT Lippo E-Net, which owned 5.6% of the lender. Despite their minority holding, the Riady's retained controlling rights.

On 26 August 2005, the bank's shareholders and Bank Indonesia approved the sales of the 52.05% controlling stake held by Swissasia Global to Santubong Investment B.V which was wholly owned by Khazanah Nasional Berhad, the investment arm of the Malaysian federal government. The sales took effect on 30 September the same year.

Since Khazanah, had an indirect interest of 93 percent in Lippo Bank through Santubong Investment BV and Greatville Pte. Ltd., and also owns 64 percent of Bank CIMB Niaga through Bumiputra-Commerce Holdings, Bank Niaga and Lippo Bank had to be merged to comply to the Indonesian central bank's "single presence policy". On 1 November 2008, Lippo Bank officially merged with Bank CIMB Niaga and are known as PT Bank CIMB Niaga Tbk the Indonesian subsidiary of CIMB Group.