Moody's Investors Service has upgraded the long-term local and foreign currency deposit ratings of PT Bank Permata Tbk (IDX: BNLI) to Baa2 from Baa3 - Photo by the Company

JAKARTA (TheInsiderStories) – Bangkok Bank Public Company Limited, PT Astra International Tbk (IDX: ASII) and British’ Standard Chartered Bank (Stanchard) has signed the Conditional Share Purchase Agreement today (12/12) to acquire 89.12 percent PT Bank Permata Tbk (IDX: BNLI). The transaction due to Financial Service Agency (FSA) approval and is expecting closed in 2020.

The Thailand-based lender bought the share at 1,498 per unit or 1.77x of PermataBank’ booked value. The bank has beat its key rival Japan’ Sumitomo Mitsui Financial Group (SMFG) (8316.T) to buy Rp37.43 trillion-valued bank (US$2.67 billion).

Followed the transaction, Bangkok Bank will held tender offer for the public’ part. The lender will finance all the transaction from the internal cash.

“We welcome the notification from our shareholders that Bangkok Bank will become the majority shareholder of PermataBank after the transaction is completed,” said the president director, Ridha DM Wirakusumah, in an official statement.

He continued, this acquisition will provide opportunities for PermataBank to utilize the expertise and extensive network of Bangkok Bank in corporate and small and medium businesses

PermataBank recently marked the third quarter of 2019, with strong business performance, posted a net profit after tax of Rp1.1 trillion, an increase of 121 percent from the same period last year, and an increase in asset quality, where liquidity was maintained at the optimal level.

The lender is eyeing profit of Rp2 trillion in 2020 from this year target Rp1 trillion. As of September 2019, the bank announced net profit of Rp1.1 trillion, up 121 percent on an annual basis. This was contributed by an increase in net interest income by 3.0 percent and operating income other than interest by 22 percent.

Last February, Stanchard stated that investment in local lender was not a priority for the company and gave a signal to sell its shares. But no reasoned why Astra also wants to sell their parts at the bank.

Bangkok Bank is the largest corporate bank in Thailand with total assets of $105 billion, operating internationally in 31 locations in 14 developing countries, including China, Cambodia, Hong Kong, Indonesia, Japan, Laos, Malaysia, Myanmar, Philippines, Singapore, Taiwan, Vietnam, Britain and the United States, Bangkok Bank has more than 17 million retail customers and operates in almost 1,200 branches.

US$1: Rp14,000

by Linda Silaen, Email: linda.silaen@theinsiderstories.com