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OCBC to acquire Indonesian unit of Commonwealth Bank for $141m
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A staff member of privately owned bank PT Bank OCBC NISP serves a customer in this undated photograph. (tribunnews.com/File)
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CBC Indonesia, a subsidiary of Singapore-based Oversea-Chinese Banking Corporation, has signed an agreement to acquire a 99 percent stake in Commonwealth Bank of Australia's (CBA) local unit in Indonesia, both companies announced on Thursday.
The deal is estimated to be worth around Rp 2.2 trillion (US$141 million) and it will merge PT Bank Commonwealth (PTBC) into OCBC Indonesia, formerly known as PT Bank OCBC NISP.
OCBC Indonesia is expected to see its assets rise to $16.96 billion after the acquisition is concluded, from a previous $15.8 billion.
The transaction is still pending approval from the Indonesian Financial Services Authority (OJK) and Monetary Authority of Singapore.
According to a disclosure to the Indonesian Stock Exchange, OCBC Indonesia also plans to acquire the remaining 1 percent share of PTBC from other shareholders.
Parwati Surjaudaja, president director of OCBC Indonesia, explained that the acquisition would strengthen and complete the lender’s ability to offer financial services to the retail and small and medium enterprises (SMEs) segments.
Reuters reported on Oct. 31 that Malaysian bank CIMB and Japanese financial firm J Trust were among companies looking to buy PTBC in a deal that would have valued the lender at between $400 and $500 million, citing sources with knowledge of the matter. The deal was supposedly to be conducted by the local units of each bank in Indonesia.
