Bangkok Bank Public Company Limited (the Bank) today strengthened its position as a leading diversified ASEAN bank by completing its landmark acquisition of PT Astra International Tbk’s and Standard Chartered PLC’s aggregate 89.12% shareholding in PT Bank Permata Tbk (Permata), Indonesia’s 12th largest bank by total assets.
The transaction was completed today at the agreed valuation of a 1.63 times multiple of Permata’s book value as at March 31, 2020, or approximately IDR33,662 billion (US$2,282 million, Baht 73,722 million). Permata, with an asset base of IDR167,394 billion (US$11,349 million, Baht 366,595 million) with 3.75 million customers and 312 branches across Indonesia, is now Bangkok Bank’s most significant investment. As the next step, Bangkok Bank will apply to the Indonesian financial regulator, Otoritas Jasa Keuangan (OJK), for approval to conduct a mandatory tender offer for the remaining 10.88% stake in Permata. Bangkok Bank’s Indonesian branches will be combined with Permata in the future.
Bangkok Bank’s acquisition of Permata is a strategic move for growth, said Mr. Chartsiri Sophonpanich, President of Bangkok Bank.
“Permata will give Bangkok Bank a stronger presence in Southeast Asia’s two largest economies, reinforcing our position as a leading ASEAN bank. We will support Permata to grow its retail, SME and corporate business, while Bangkok Bank’s customers will have enhanced access to growth opportunities in Indonesia. We are also looking forward to continuing to expand the business partnership between Permata and Astra.”
“We would also like to thank Indonesia’s and Thailand’s financial authorities, OJK and the Bank of Thailand, and other relevant authorities for approving and supporting the acquisition.”
Prijono Sugiarto, President Director of Astra said, "Astra would like to express its gratitude for the support of all parties involved in the completion of the Permata transaction. We remain positive about Indonesia’s financial service sector and will continue to focus on growing our retail finance business. We wish continued success to Bangkok Bank and Permata and hope to continue developing the strong relationships between Astra Group and Permata.”
Bill Winters, Group Chief Executive of Standard Chartered said, “The Permata team has done a tremendous job and we believe the business’s long-term potential remains strong, but it was no longer core to our strategy in Indonesia which will now focus on our wholly-owned branch business. Transferring our stake to a highly respected and motivated new owner will enable Permata to continue its impressive development.”
Bangkok Bank has a long history in Indonesia having opened its first branch in Jakarta in 1968. “Bangkok Bank has been present in Indonesia for more than 50 years and we remain highly confident in the country’s resilient economy and bright future prospects,” said Mr. Chartsiri. “During these difficult times, as countries grapple with the COVID-19 pandemic and its economic repercussions, we will stand steadfast alongside Permata. Together we will support our people, customers and communities to help them overcome these challenges.”
The investment will enable Permata to tap into Bangkok Bank’s expertise in corporate and SME banking, strong regional network and relationships with top corporates across Asia, as well as cross-border product and sectoral expertise. Bangkok Bank will support Permata’s customers by delivering high quality products and services and enhancing access to overseas markets through Bangkok Bank’s network in Thailand and abroad. The Bank is also committed to supporting corporates and SMEs across industries, including the agriculture and automotive sectors, in achieving their business goals and promoting financial inclusion and financial literacy.
Bangkok Bank’s investment in Permata will increase the contribution of international loans to the Bank’s total loans from 17% to 25%.
About Bangkok Bank
Bangkok Bank Public Company Limited, established in 1944, is one of Southeast Asia’s leading regional banks and Thailand’s largest bank by deposits and shareholders’ equity. It has more than 17 million customer accounts and nearly 1,150 branches nationwide with total assets of US$104 billion as of March 31, 2020. Internationally, Bangkok Bank has the largest overseas branch network of any Thai bank, with 31 overseas branches in 14 economies, including China, Cambodia, Hong Kong, Indonesia, Japan, Laos, Malaysia, Myanmar, the Philippines, Singapore, Taiwan, Vietnam, the United Kingdom, and the United States.
Permata is Indonesia’s 12th largest bank by total assets (as at December 31, 2019) and Bangkok Bank’s largest investment. It provides comprehensive financial services to 3.75 million customers in 62 cities across Indonesia through its network of 312 branches. Permata is a pioneer of Indonesia’s mobile banking and mobile payment technology, including its PermataMobile X application which has more than 200 innovative features.