The Acquisitions and the Suspend of Century Bank

The Accuisition
Bank of Indonesia temporary cancel the acquisition of Century Bank by Sinar mas Multiartha. But Sinar Mas stil process the acquisition plan and now in due dilligence process.PT Century Mega Investindo and First Gulf Asia Holdings Ltd as share holder of PT Bank Century Tbk and Sinar Mas have signed the Letter of Intent (LoI) for accuisiting 70% of share Bank Century share.

The Suspend
Day before, Bank Century was having problems in settling its clearing payments due to a technical problem. Because of that, The Indonesia Stock Exchange (IDX) suspended the trade in Bank Century Thursday, pending clarification from the bank over the question that it could not provide Rp 5 billion to the central bank clearing house.

Century Bank historyBank Century was formed from a merger between Bank CIC, Bank Pikko and Bank Danpac in late 2004.

Meaning of Suspend(Suspended of Trading)
A stoppage in the trading of a security for an extended period of time that normally occurs when there is a lack of material financial information on the security. Once the security is suspended, shares of that security cannot be traded on the market until the suspension is lifted or lapses. The exact amount of time for the suspension will be determined on on a case-by-case basis.

Meaning of Acquisition
A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own. Acquisitions are often paid in cash, the acquiring company's stock or a combination of both.