Bangkok Bank to buy Indonesian lender Permata for $2.7b

Photo: Bank Permata website

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.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.