Bangkok Bank Pcl, Thailand’s third-largest lender by assets, said on Thursday it had agreed to buy an 89.1% stake in Indonesia’s PT Bank Permata for about $2.7 billion, in the first major overseas acquisition for a Thai bank.
The Thai lender will acquire the stake in the mid-sized Indonesian lender from Standard Chartered and Indonesia’s PT Astra International, it said in a statement, adding that the deal is expected to close in 2020.
Bangkok Bank expects to launch a mandatory tender offer for the remaining 10.9% stake in Permata at the same purchase price after completing the transaction to acquire a 44.6% stake each from StanChart and Astra, it said.
Takeover interest in Permata gained ground this year after StanChart said in February its investment in the bank was no longer core, signalling it was open to selling its stake. Permata shares have more than doubled so far this year.
StanChart, which generates the bulk of its revenue in Asia, said in a separate statement that it would raise about $1.3 billion from the divestment, which, it said, was an important part of the bank’s “capital optimisation” plans.
“The sale of our stake in Permata will allow us to focus on our wholly-owned business … and will release capital for reinvestment or return to shareholders,” StanChart Chief Executive Bill Winters said in a statement.
Established in 1955, Permata operates about 330 branches across 62 cities in Southeast Asia’s biggest economy, home to about 100-plus lenders. The bank had $7.6 billion in loans and $8.5 billion in deposits as of end September.