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Archive for February 7th, 2012

Urgent Need for Boards to Diversify Across Asia According to Korn/Ferry Board Diversity Study

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– Over 70 percent of boards across Asia have no independent women directors

– Demographic characteristics of female directors found to be markedly different from male directors

SINGAPORE, Feb. 6, 2012 /PRNewswire-Asia/ — Findings in an inaugural board diversity study by Korn/Ferry International, The Diversity Scorecard: Measuring Board Composition in Asia Pacific, has found that female representation on boards of directors in the Asia Pacific region remains low and that female directors have different demographic characteristics compared to male directors.

The study’s findings underscore an urgent need for Asia’s boards to recruit more diverse directors, especially now when so many companies are at a turning point in the global economy. More than 70 percent of boards in five countries — Hong Kong, India, Malaysia, New Zealand and Singapore — have no female independent directors. Boards with two or more female directors were rare, while boards with three or more female independent directors were almost non-existent.

The study, the first in Asia Pacific focusing on board diversity, covers the largest 100 domestic companies by market capitalization in Australia, mainland China, Hong Kong, India, Malaysia, New Zealand, and Singapore. The study compares the extent to which female and male directors hold key leadership positions on boards, as well as the profiles of female and male directors in these countries. A total of 6,538 directors holding a total of 5,793 directorships in these companies were included in the study.

The study was conducted in partnership with Associate Professor Mak Yuen Teen of the NUS Business School at the National University of Singapore, who is a recognized authority on corporate governance in Asia.

“As Asia’s growth trajectory propels it to a central spot in the global economy, the most effective boards will be the ones that are international — with functional, sector and gender diversity,” said Alicia Yi, managing director, Global Consumer Market of Korn/Ferry Asia Pacific, and member of the Board & CEO Services Practice.

“The world is taking notice of the potential and power of women — as consumers, as leaders, and as a growing majority of the talent pool. Companies have started to recognize that successful boards should reflect the markets they serve and that homogenous leadership teams can be less equipped to do business in an increasing complex business environment,” she added.

The study also found a key number of differences between the demographic characteristics of female and male directors, including:

— Female directors are younger than male directors across all countries, by about three years on average.
— Female directors were more likely than male directors to have law or accounting educational backgrounds, while male directors were more likely to have engineering and science backgrounds.
— The average tenure of female independent directors is shorter than male directors across all countries.
— Female directors are more likely than male directors to have public sector or not-for-profit sector experience.
— Female directors are generally underrepresented in board leadership positions such as board chairs and board committee chairs.

Other aspects of diversity revealed that:

— On average, China had the youngest directors.
— Hong Kong companies, followed closely by China companies, are most likely to have directors from two or more generations.
— The majority of boards, other than those in Malaysia and Singapore, come from a single ethnic group.

“A lot of leading companies are now taking diversity, including gender diversity, issues quite seriously — setting employee targets, tracking and looking for ways to improve — as increasing evidence suggests that more diverse boards and management teams can be more effective and linked to better corporate performance,” said Yi.

“I have no doubt that the diversity issue will accelerate in years to come. Only by having a diverse pool of independent, talented, and committed directors will companies be able to connect with and capitalize on the engine of Asia’s consumption. Investors are also demanding diverse boards to promote good governance and sustainability and better navigate uncertain and challenging global economies,” she added.

An electronic version of the report is available to read and download from the Korn/Ferry Institute here:

Korn/Ferry Board & CEO Services Practice
Korn/Ferry International’s Board & CEO Services Practice assists clients with board director search and selection, CEO Search and selection, CEO Succession Planning and assessment, board effectiveness, and director/executive compensation consulting.

About Korn/Ferry International Asia Pacific
Korn/Ferry International, with a presence throughout the Americas, Asia Pacific, Europe, the Middle East and Africa, is a premier global provider of talent management solutions. Korn/Ferry, based in Los Angeles, was the first major global executive search firm to operate in Asia Pacific when it opened its doors in Tokyo in 1973. Today it has eighteen offices in key business centers throughout the region. Korn/Ferry delivers an array of solutions that help clients to attract, engage, develop, and retain their talent.

Visit for more information on the Korn/Ferry International family of companies, and for thought leadership, intellectual property and research.

SOURCE﹛Korn/Ferry International

Written by asiafreshnews

February 7, 2012 at 10:31 am

Posted in Uncategorized

Yawadwipa Companies Expresses Interest in Strategic Acquisition of Mutiara Bank

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Strategic Interest in Mutiara Bank Formally Communicated

JAKARTA and SINGAPORE, Feb. 6, 2012 /PRNewswire-Asia/ —

Key Messages:

— 100% Cash Acquisition With or Without Well-Capitalized Bank
— Further Financial Support to Boost Capital Ratios to Industry
— Independent and Growth Enhancing Solution With No Political
— Commend Mutiara and LPS on Advancements and Restoring Trust
— Protracted Process Risks Destroying Progress To-Date

Yawadwipa Companies (“Yawadwipa” or the “Company”) announced today that it has formally communicated to the financial advisors of PT Bank Mutiara Tbk (“Mutiara” or the “Bank”), its strategic interest in an acquisition of the Bank from the Indonesian Deposit Insurance Agency (“LPS”). As stipulated by existing law (Article 42 of Law No. 24/2004), the purchase price currently may be no less than LPS’s 2008 temporary capital placement into Mutiara, which was approximately Rp 6.7 trillion, or at spot exchange rates, roughly $750 million USD (the “Rescue Price”). Whether in partnership with a well-capitalized institution committed to Indonesia or on a standalone basis, Yawadwipa is prepared to assess the merits of acquiring 100% of Mutiara for the Rescue Price while also providing a direct equity injection to improve capital ratios and accelerate growth, subject to due diligence and other customary process matters. Yawadwipa looks forward to discussing the strategic interest in the Bank with a variety of constituencies in the public and private sectors.

As was outlined upon its formation, Yawadwipa’s overarching mission is to develop the leading merchant bank for Indonesia and do so through a collaborative and partnership approach. To aspire to be the most integral independent domestic financial services entity to the country comes with it substantial responsibility and a long-term approach to any business endeavor. While a profit making business with a fiduciary obligation to deliver the highest quality earnings to its investor set, the Company fully accepts and embraces its duty to play an active role in helping facilitate public sector initiatives and advance social causes. Its past advice on policy matters, continuous interaction with leading decision makers and its formalized agreement to contribute 10% of its profits to local charitable and similar efforts, are evidence of this commitment.

Yawadwipa believes the Mutiara platform consists of many attractive businesses and has proven itself an innovator while restoring trust over the past three years. It has achieved strong results in the face of extraordinary internal and external pressures, which is a testament to the management team and the public sector’s oversight of the institution formerly known as Bank Century. Exemplary deposit and loan growth, a material reduction in non-performing assets and a solidified equity position are tangible evidence of these efforts. Nevertheless, in the face of global headwinds and a significant slowing of asset recoveries, the short term prospects for Mutiara are more tempered and substantial changes in book value and other valuation benchmark statistics are unlikely to occur within the legally allowed Rescue Price period of three years plus two one-year extensions. As reported on January 18, the Bank expects profits to fall 62% this year to approximately Rp. 180 billion, largely by virtue of substantially more limited asset recovery income.

Yawadwipa’s multi-faceted business model uniquely positions it to provide Mutiara the benefits of an expansion strategy that will result in domestic job creation and business growth, and private equity capital and the know-how of seasoned investment professionals to most effectively capture market opportunities. Private equity as an industry has played a significant role in the evolution of capital markets, but more importantly it has been the transactional solution to a number of troubled or contentious financial services situations throughout the world in the past decade. In 2002, a consortium of private equity (Farallon Capital) and a local partner (Djarum Group) successfully acquired BCA from the government, with BCA since growing to become a most highly valued depository institution in Indonesia. Consistent with the BCA consortium, Yawadwipa will work with LPS and other parties to address any and all concerns that may be associated with private equity, pooled capital or consortium ownership and may leverage certain key persons involved in the 2002 BCA process.

The Company will attempt to harness whatever resources necessary to assist LPS and others achieve a sensible and satisfactory divestiture of Mutiara in a timely manner. The team’s collective experience in a substantial number of complex financial services transactions over a lengthy period of time, coupled with its local knowledge and relationships likely makes Yawadwipa a logical part of any Bank solution. Yawadwipa welcomes the opportunity to evaluate Mutiara thoroughly if so afforded by LPS, and commit to being a constructive and additive partner in the process. It is Yawadwipa’s hope that a matter continuing to play out quite publicly and at times overshadowing the material advancements in eradicating poor business behaviors, can be supplanted by positive news of a favorable Mutiara transaction.

Specific to Mutiara’s history and certain legacy and ongoing facts and circumstances, Yawadwipa is less sensitive than financial institutions with deeply entrenched market positions or established and differing operating procedures. Further, in combination with our to-be-named advisors, Yawadwipa is relatively advanced at dealing with many of the issues that continue to linger, having worked through similar matters in the past. Nonetheless, Yawadwipa has no illusions that consummating a transaction will be uncomplicated or achieved without the combined efforts of a number of parties, some with potentially competing agendas. As evidenced by the unresolved Mutiara sale process in 2011, a simple and straightforward solution, no matter the macro, sector and/or company-specific environment, is challenging. The global economic situation by most accounts has not improved since the last auction, which leads us to conclude that if this process is to be a success, new participants, strong cooperation and pragmatism, and structural innovation are needed.

Yawadwipa’s decision to convey strategic interest in Mutiara is not without reservation. Yawadwipa’s interest, either directly or indirectly, is predicated on assurances of a transparent and efficient process. Yawadwipa has limited interest in devoting substantial effort to a highly complex situation that will inevitably slow other initiatives, potentially including the Java Fund, if political grandstanding and bureaucracy impede a constructive and sensible solution. Financial institutions at their core are built on trust and reputation. Another process failure or a protracted resolution risks disenfranchising the loyal customers and employees that helped resurrect Mutiara. Yawadwipa has no political agenda or ties nor does it express a view concerning the government’s 2008 decision to support Bank Century. Yawadwipa simply encourages an efficient process that allows LPS to monetize its position in Mutiara in a timely manner, on the most advantageous terms, and absent political rhetoric.

Contact Information:

General Inquiries:
SOURCE Yawadwipa Companies

Written by asiafreshnews

February 7, 2012 at 10:07 am

Posted in Business & Finance