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JAKARTA, INDONESIA - SHARE trading in Indonesia's PT Bank UOB Buana has been suspended from Wednesday, pending further clarification on the delisting plans of its Singapore parent, the Indonesia Stock Exchange said.
Singapore's United Overseas Bank said on Wednesday it had proposed to delist its 61.1-per cent-owned Indonesian lender UOB Buana, and planned to buy the remaining shares that it does not own.
'After receiving notification from PT Bank UOB Buana, the exchange decided to suspend trading of the bank's shares from Wednesday,' the exchange said in a statement.
The firm was not immediately available for comment.
In January, PT Bank Buana said that its parent planned to set up a holding firm for its two Indonesian units - Buana and its subsidiary UOB Indonesia - to meet an Indonesian ruling limiting control to more than one bank.
Under Indonesia's central bank ruling, investors with controlling stakes in more than one bank either have to merge them, set up a holding company, or divest shares by 2010, as part of efforts to consolidate the banking industry.
Indonesia expects the ruling to help consolidate the country's 130 banks, which have total assets of around US$200 billion (S$273 billion). -- REUTERS
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