Thailand-based Bangkok Bank has agreed to acquire an 89.12% stake in Bank Permata, an Indonesian bank, from Standard Chartered Bank and Astra International for IDR37.43 trillion (about $ 2.674bn) as part of its international expansion plans.
Both Standard Chartered Bank and Astra International hold 44.56% stakes each in the Indonesian bank, which is headquartered in Jakarta.
The Thai banking group is looking to acquire the remaining stake of 10.88% as well in the Indonesian bank by means of a mandatory tender offer upon closing of the deal.
The transaction values 100% of Permata at IDR42 trillion (about $3bn).
Standard Chartered group chief executive Bill Winters said: “The sale of our stake in Permata will allow us to focus on our wholly-owned business in the large and strategically important Indonesian market; and will release capital for reinvestment or return to shareholders.
“This transaction further demonstrates our focus on executing the refreshed strategic priorities we announced earlier this year, at pace.”
Assets held by Permata and details of its network
Currently, Permata is the 12th largest bank in Indonesia on the basis of total assets, which stood at around $10.9bn as of 30 September 2019. The bank’s total shareholders’ equity at the same date was around $1.7bn, while its net income for the nine-month interim period ending 30 September 2019 was around $77m.
Permata has a network that spans 62 cities with 332 branches and mobile branches, while employing around 7,700 employees.
Bangkok Bank said that the transaction will strengthen its position further as a regional player with a strong position in Thailand and Indonesia. The bank has been operating in Indonesia since 1968.
Bangkok Bank president Chartsiri Sophonpanich said: “Based on our firsthand experience in Indonesia and deep understanding of the banking sector, we believe that the Indonesian banking sector is poised to continue delivering attractive growth while maintaining healthy margins.
“Permata offers us a solid scalable platform with capabilities that complement our strategic objectives, including an extensive distribution network, a strong retail deposit franchise and brand, and advanced digital capabilities.”
The closing of the deal is expected to occur by the end of 2020. It will be subject to regulatory approvals from the Bank of Thailand and Otoritas Jasa Keuangan (OJK), approval of Bangkok Bank’s shareholders, and other preceding conditions.
