JAKARTA (TheInsiderStories) – PT Astra International Tbk (IDX: ASII) and its partner London-based Standard Chartered PLC, have agreed with Bangkok Bank Public Co. Ltd., to amend the terms of the agreement announced the transaction of aggregate 89.12 percent equity interest in PT Bank Permata Tbk (IDX: BNLI), said the companies on Monday (04/20). The third parties agreed to reduced the bid price.
Earlier, the acquirer agreed to purchased the local lender shares for US$2.67 billion. The transaction due to Financial Service Agency (FSA) approval and is expecting closed in 2020.
It said, Bank Permata’ shareholders are expected to approve the acquisition plan at an shareholders meeting scheduled for April 23, at which both Standard Chartered Bank (SCB) and Astra are entitled to vote their respective 44.56 percent shareholdings.
The parties have agreed to revise the purchase price from 1.77 to 1.63 times of the bank’ shareholders’ equity as at March 31, 2020, subject to the transaction closing on or prior to June 30, 2020.
SCB said, the latest estimated consideration payable in cash is approximately Rp17 trillion (US$1.10 billion). The 18 percent reduction in estimated proceeds compared to that indicated on Dec. 12, 2019 is attributable to the revised valuation multiple, a reduction in Bank Permata’ shareholders’ equity due to the adoption of IFRS 9 and the recent depreciation of Indonesian Rupiah against the US Dollar.
The company said, the transaction would increase the common equity tier 1 capital ratio of around 40 basis points, reflecting a reduction in risk-weighted assets of around $9.1 billion and the deconsolidation of $500 million minority interest equity.
Followed the transaction, Bangkok Bank will held tender offer for the public’ part. The lender will finance all the transaction from the internal cash.
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