The Indonesian businessman whose capital infusions rescued an ailing San Francisco Co. invested another $3.5 million in the banking company last year-increasing his ownership to 97%.
But because he didn't commit another $1 million, Putra Masagung did not receive warrants promised under a February 1996 agreement. The investor did receive preferred stock, which was converted to common stock in December.
Under the agreement between the parent of Bank of San Francisco and Mr. Masagung, the investor agreed to infuse $4.5 million in added cash to bring the bank's capital level above 7%, in compliance with cease-and-desist orders from state and federal regulators. Mr. Masagung was to be granted warrants in exchange if the full amount were invested by yearend.
Mr. Masagung did not invest the final $1 million, however, because the bank's capital at yearend was almost 10%, already putting it in compliance. As a result, the bank announced last week, the warrants were not granted.
The investor still plans to invest the remaining amount, according to chief financial officer Keary L. Colwell.
Mr. Masagung, who first bought San Francisco Co. stock in 1992, gained a majority interest in 1993, when he provided much-needed capital. He held an 88% stake before he started investing again in 1995.