Acquisition of the stake will take place in two phases from US private-equity firms TPG and its Indonesian partner, Northstar Pacific Partners.
In the first phase, the bank will pay nearly $946m for the acquisition of 24.26% stake of BTPN, out of which 16.87% will be bought from TPG Nausantara (TPGN) and remaining 15.74% stake will be acquired, following concerned regulatory approvals.
Purchase of stake in the Indonesian financial institution will provide the Japanese lender a channel to tap business opportunities in one of the fastest growing economics in Southeast Asia.
In 2008, TPG Capital bought 71.6% stake in BTPN for a purchase price of $195m.
In addition to SMFG, another Japanese financial firm Mitsubishi UFJ Financial Group is also considering acquiring certain interest in BTPN.
Founded in 1958, BTPN operates as a commercial lender with a market value of $3bn and employees over 19,000 staff and manages 10,000 branch offices.
