Khazanah to buy Indon bank

KUALA LUMPUR: Khazanah Nasional Berhad, Swissasia Global (SAG) and Khazanah's wholly-owned subsidiary Santubong Investments BV have entered into an agreement to acquire SAG's 52.05% stake in Indonesia's PT Bank Lippo for between 3.18 trillion and 3.30 trillion rupiah (RM1.23bil and RM1.28bil). 

The deal would be finalised upon completion of the bank's June 30 accounts auditing, said Khazanah, the Malaysian Government's investment-holding arm. 

“Khazanah is committed to the long-term development of Indonesia and views this investment as an important milestone towards further strengthening the ties between Malaysia and Indonesia,” it said in a statement yesterday. 

Bank Lippo is listed on the Jakarta Stock Exchange and ranks as Indonesia's ninth-largest bank in terms of assets as of December last year. 

The proposed acquisition is conditional upon the receipt of all regulatory approvals including approvals from Bank Indonesia, the country's central bank and the shareholders of Bank Lippo. 

“Khazanah believes that Bank Lippo's franchise and banking infrastructure will provide an excellent platform to participate in the growth opportunities and strong underlying fundamentals of the Indonesian economy,” said Khazanah. 

SAG has obtained the consent of the Indonesian Finance Ministry to sell its entire shareholding in Bank Lippo to Santubong Investments BV. 

The proposed acquisition was expected to be fulfilled within 12 weeks. 

Khazanah also said it would be making a tender offer for the remaining shares in Bank Lippo upon completion of the proposed acquisition. 

Bank Lippo was established in 1948 as Bank Perniagaan Indonesia, the first private bank in Indonesia. 

The bank has 395 branches throughout Indonesia, access to over 2.8 million customers and a strong track record of customer service and innovation. 

It provides banking and investment services to consumers and commercial customers, and is one of the largest credit-card merchant acquirers in Indonesia. – Bernama