KBank buys 10% stake in Bank Maspion Indonesia
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The price paid was 615 rupiah (S$0.06) per share, nearly 62% premium to the stock’s closing price on Friday. The shares traded over 2% higher on Monday.
“Bank Maspion is the best partner for Kbank to establish a presence in the Indonesian market,” KBank president Predee Daochai said in a statement, noting its activity in logistics and property development.
The move would increase KBank’s presence in Southeast Asia, China, Japan and South Korea, which it considers a crucial market for Thai businesses, according to a company statement.
KBank already has a partnership with Indonesia’s top lender, Bank Central Asia.
Bank Maspion would benefit from KBank’s expertise in digital banking and SME banking operations, said president director and CEO of Maspion Group in a statement.
Indonesia’s banking sector limits foreign ownership of a financial institution to 40%.
Questions & Answers
Q.How will this investment benefit Bank Maspion Indonesia?
How will this investment benefit Bank Maspion Indonesia?
Bank Maspion is expected to gain from KBank's established expertise in digital banking and its operations supporting small and medium-sized enterprises. This partnership aims to use KBank's strengths.
Q.What is the maximum foreign ownership allowed in an Indonesian financial institution?
What is the maximum foreign ownership allowed in an Indonesian financial institution?
Indonesia's banking sector regulations currently limit foreign ownership in any financial institution to a maximum of 40%. This is a key restriction for international investors in the market.
Q.Which other Indonesian bank does KBank already have a partnership with?
Which other Indonesian bank does KBank already have a partnership with?
KBank maintains an existing partnership with Bank Central Asia, which is noted as Indonesia's top lender. This indicates KBank's continued strategic interest in the Indonesian market.
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