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ublicly listed PermataBank (BNLI) is looking to obtain a shareholding in automotive financing company PT Astra Sedaya Finance, the bank announced on Monday.

Permata retail director Lauren Sulistiawati said that the lender would increase its capital in an effort to finance the share purchase, but she did not provide details of the move. '€œWe'€™ve just submitted the necessary documents to Bank Indonesia and the Financial Services Authority [OJK] today [Monday] and are waiting to proceed with the next steps,'€ she said in a text message.

Permata and Astra Sedaya are affiliated companies as both of them are part of diversified conglomerate PT Astra International (ASII). Astra International owns 44.6 percent of Permata and wholly owns Astra Sedaya through PT Garda Era Sedaya and PT Sedaya Multi Investama.

According to a bourse statement, Permata signed a share-subscription agreement with Astra Sedaya, Astra International, Garda Era and Sedaya Multi on June 21. Under the agreement, the bank will acquire 237.61 million new shares, which will represent 25 percent of Astra Sedaya'€™s enlarged shares, for Rp 2.04 trillion (US$205.42 million).

After the share purchase, Astra International'€™s holding in Astra Sedaya will be reduced to 75 percent.

According to Lauren, the bank hopes to boost its automotive joint-financing business by acquiring the Astra Sedaya stake.

However, the purchase is unlikely to be complete until 2014 due to the long acquisition process at the regulator level.

'€œWe hope to about double our joint-financing business, especially in cars, in the next three years,'€ Lauren said. By the end of last year, Permata'€™s joint financing stood at about Rp 9 trillion from motorcycle and car loans, with overall lending amounting to Rp 69.3 trillion.

Between January and March, the joint-financing figure still amounted to around Rp 9 trillion, while its overall lending reached Rp 100.7 trillion, up 36 percent year-on-year.

Permata'€™s operating income grew 14 percent to Rp 1.52 trillion and its net profits increased 7.3 percent to Rp 355.74 billion in the first quarter.

Meanwhile, Astra Sedaya expects to channel Rp 22.5 trillion in new financing by year-end, up 8.2 percent from 2012. According to Astra Sedaya corporate secretary Welfizon Yuza, the target includes joint financing with other parties.

The company '€” which provides financing for new and used cars, and heavy equipment '€” is looking to finance the purchase of 160,000 vehicles in 2013, higher than the 145,000 units recorded last year.

In the first quarter, it channeled Rp 5.8 trillion in new financing, a 16 percent rise on the same period a year before. The number of vehicles surged 24 percent to 41,000.

Its revenues surged 20 percent to Rp 1.03 trillion and its net profits rose by 22 percent to 240 billion.

Following the share-subscription announcement, Permata'€™s shares closed at Rp 1,690 on Monday, unchanged from last Friday.