<article>Thailand-based Kasikornbank has agreed to acquire 9.99 per cent stake in publicly-listed Bank Maspion Indonesia for $20 million &#8211; marking the bank’s first foray in the country.</article>

Thailand-based Kasikornbank has agreed to acquire 9.99 per cent stake in publicly-listed Bank Maspion Indonesia for $20 million &#8211; marking the bank’s first foray in the country.
The move would increase KBank&#8217;s presence in Southeast Asia, China, Japan and South Korea, which it considers a crucial market for Thai businesses.
The acquisition price has been pegged at Rp 615 (US$ 0.05) per share, or nearly 62 per cent premium to the stock’s closing price on Friday. The deal is expected to be completed 10 days after the signing of agreement.
“This alliance with Bank Maspion is the latest strategic move, which underscores KBank&#8217;s resolution to serve as a partner bank in the AEC+3 region for our customers,” KBank president Predee Daochai said in a statement.
KBank services in cooperation with Bank Maspion will start within this quarter, with the first phase of operation to be offered to corporate customers, the statement added.
Bank Maspion has just achieved BUKU2 status with key services focus on SME business and digital banking which align with KBank’s objective.
The bank also provides an attractive attribute via its sound risk management which see its NPL ratio stands at 0.91 percent, versus the market ratio of 2.93 percent.
Moreover, the bank’s extensive footprint of 51 office networks are strategically located in all major cities.
“Considering these factors, Bank Maspion is the best partner for KBank to establish a presence in the Indonesian market and to offer customers efficient services of cross-border trade and investment, plus advisory recommendations of proficient local service providers,” Daochai said.
Indonesia is now considered as a new growth engine with a significant economic potential in AEC. It is being forecast to be the world’s seventh largest economy in 2030. It has the world’s fourth-largest population of 260 million people, and reports the highest GDP value in the region.
Indonesia’s GDP value is expected to hit $1 trillion this year, or over 5 per cent growth for the second year running.
The value of bilateral trade and investment between Thailand and Indonesia stood at $16 billion as of the end of 2016, and is expected to reach $20 billion by 2020. According to the Indonesian Investment Promotion Center (BKPM), FDI from Thailand has already reached $7 billion from 2010 up to this year.
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Thai Kasikornbank buys 10% stake in Indonesia's Bank Maspion for $20m

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