JAKARTA (TheInsiderStories) – Japanese multinational banking and financial services company Sumitomo Mitsui Bank Corporation (SMBC) is reportedly interested in acquiring PT Bank Permata Tbk (IDX: BNLI). SMBC will face Oversea-Chinese Banking Corporation Ltd. (OCBC), which previously intended to acquire the bank,” as quoted by local media.
According to sources, Sumitomo and OCBC will buy Bank Permata shares from PT Astra International Tbk (IDX: ASII) and Standard Chartered Bank (Stanchart), each of which holds 44.56 percent of shares or means 12.49 billion units of Bank Permata shares. The remaining 3.04 billion shares or 10.88 percent are still owned by public investors.
If Sumitomo successfully acquires Bank Permata, then SMBC has the potential to merge the bank with a local bank that has already been acquired, namely PT Bank BTPN Tbk (IDX: BTPN). If Bank Permata merges with BTPN, then the merged bank has the potential to become a BUKU IV bank or a bank with core capital of over Rp30 trillion (US$2.11 billion).
Previously, OCBC Singapore claimed to be interested in acquiring a 90 percent stake in Bank Permata worth $1.9 billion. OCBC will buy the bank shares from Astra International and Standard Chartered as controlling shareholders with a 44.56 percent stake.
When confirmed on this matter, Astra International’s Head of Corporate Communication Boy Kelana said it would not respond to rumors that were developing in the market.
“At present, our focus is to improve the performance of Bank Permata and ensure it returns to health. All information or material facts about Bank Permata will be communicated to the public in accordance with applicable regulations,” he said.
While Bank Permata claimed not to be in a position to provide comments or clarification regarding this matter. Meanwhile, Standard Chartered said in February that investment in Bank Permata was not a priority for the company and gave a signal to sell its shares.
Indonesian state-owned lender, PT Bank Mandiri Tbk (IDX: BMRI) had been also rumored to acquire Bank Permata. However, this was canceled because there was no agreement on the selling price between Bank Mandiri and the two controlling shareholders.
Chairman of the Board of Commissioners of the Financial Services Authority Wimboh Santoso said the cancellation was not a cause for concern. Because there are still many other parties who can replace the position of Bank Mandiri to acquire Bank Permata.
In addition to Bank Mandiri, two Japanese financial institutions are also reportedly interested in acquiring Bank Permata. The two institutions are Mizuho Financial Group and Sumitomo Mitsui Financial Group.
While in terms of performance, Bank Permata posted a net profit of Rp711.39 billion in June 2019, an increase of 146.29 percent compared to June 2018 which reached Rp288.84 billion. This profit came from operating income which reached Rp3.66 trillion. While operating expenses were recorded at Rp2.7 trillion.
The company also booked assets of Rp147.77 trillion. This value decreased compared to June 2018 which reached Rp152.89 trillion. While equity was recorded at Rp23.31 trillion, increase compared to December 2018 which reached Rp22.45 trillion.
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