Bangkok Bank Snaps Up Bank Permata
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Bangkok Bank emerges as the buyer of PT Bank Permata after Singapore’s DBS and OCBC reportedly backed out from bidding. Thailand’s second-largest lender Bangkok Bank bought Permata for about $2.7 billion to obtain a near 90 percent stake from Standard Chartered and PT Astra. The deal, which was advised by Morgan Stanley, was valued at 1.77 times Permata’s book value.
According to a Bangkok Bank release, it found the acquisition attractive due to Permata’s «leading retail deposit franchise and best-in-class digital capabilities» with more than 300 branches in 60 cities in Indonesia.
According to a filing, the acquisition is part of Bangkok Bank’s strategic transformation to become a regional lender, describing Indonesia as a «highly attractive and fast-growing market”.
International expansion is our key strategy,» said Piti Sithi-Amnuai, chairman of Bangkok Bank. «Indonesia, in particular, is a key focus for us, as it is one of the fastest-growing major economies in Asia with highly attractive macroeconomic fundamentals, favorable demographics, and increasing ASEAN regional integration.
Standard Chartered had signaled its intention to dispose of the stake in February, as it was no longer core to its strategy, and the funds raised from the sales could be used to further its share repurchase program which has already returned $1 billion.
Questions & Answers
Q.What was the reported reason for Bangkok Bank finding Permata an attractive acquisition?
What was the reported reason for Bangkok Bank finding Permata an attractive acquisition?
Bangkok Bank considered Permata attractive due to its leading retail deposit franchise and best-in-class digital capabilities. Permata also has over 300 branches spread across 60 cities in Indonesia.
Q.Why did Standard Chartered decide to sell its stake in Bank Permata?
Why did Standard Chartered decide to sell its stake in Bank Permata?
Standard Chartered had signalled its intention to dispose of the stake in February because it was no longer core to its strategy. The funds raised from the sale could support its share repurchase program.
Q.What is Bangkok Bank's stated strategic goal behind this acquisition?
What is Bangkok Bank's stated strategic goal behind this acquisition?
This acquisition is part of Bangkok Bank’s strategic transformation to become a regional lender. International expansion is a key strategy, with Indonesia identified as a highly attractive and fast-growing market.
Q.Who were the previous owners from whom Bangkok Bank purchased the stake?
Who were the previous owners from whom Bangkok Bank purchased the stake?
Bangkok Bank purchased the near 90 percent stake in Permata from Standard Chartered and PT Astra. The deal was valued at approximately $2.7 billion.
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