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Bangkok Bank to acquire another Indonesian bank after Permata deal: OJK
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The Financial Services Authority (OJK) logo is seen on the frontispiece at its headquarters in Jakarta. (kontan.co.id/File)
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hailand-based Bangkok Bank is planning to acquire another Indonesian bank after closing a deal to purchase a majority stake in Bank Permata from Standard Chartered and Astra International for US$2.7 billion, according to the Financial Services Authority (OJK).
OJK commissioner for banking supervision Heru Kristiyana said Thursday that the bank was granted the approval to acquire Permata Bank, adding that the bank may purchase another Indonesian bank after completing the Permata deal.
“It is already in their pipeline,” Heru told reporters in Jakarta without disclosing the name of the bank. “Everything is already on the right track with Bangkok Bank.”
According to OJK Regulation No. 56/2016 on bank ownership, the OJK allows bank institutions and non-bank institutions to acquire a maximum 40 percent stake in local banks.
Read also: Hopes high for Bank Permata after acquisition by Bangkok Bank
However, the OJK said it would allow investors to own more than 40 percent on the condition that they support financial system stability and help to develop the national economy.
Bangkok Bank announced in December last year that it had agreed to buy 89.1 percent of publicly listed Bank Permata for around US$2.67 billion as part of its overseas expansion.
The majority of Bank Permata shares is owned by British financial giant Standard Chartered and Indonesian diversified conglomerate PT Astra International, with each owning 44.56 percent. Bank Permata operates 330 branches in 62 cities across Indonesia.
The deal values Permata at 1.77 times its book value as per September 2019 and indicates a purchase price of Rp 1,498 (11 US cents) per share.
The deal is expected to close in 2020 with Bangkok Bank set to make a mandatory offer for the remaining 10.88 percent of the shares at the same purchase price after completing the transaction to acquire the stakes from Standard Chartered and Astra.
