HSBC has completed a mandatory tender offer (MTO) for the remaining 10.11% of the shares held by the general public in the Indonesian commercial bank – PT Bank Ekonomi Raharja Tbk (Bank Ekonomi). Subsequently, 269,012,500 shares were successfully acquired for a consideration of IDR713.4 billion. This brings HSBC’s total shareholding in Bank Ekonomi to 98.96%. The rest will remain unlisted and in Indonesian ownership, as required by local regulation.
HSBC was required to make an MTO to public shareholders after it acquired 88.89% in Bank Ekonomi on 22 May 2009. HSBC Asia Pacific Holdings (UK) Limited, a wholly-owned subsidiary of HSBC, made a cash offer of IDR2,652 per share which is equivalent to the $0.256 price per share HSBC paid in May 2009 (based on the $:IDR exchange rate on 19 May 2009).
The acquisition almost doubled HSBC’s presence to 208 outlets in 26 cities in the world’s fourth most populous country, Indonesia. Bank Ekonomi’s strong SME banking franchise is expected to complement HSBC’s expertise and international capabilities.
