Mumbai: State Bank of India (SBI), the country's largest bank, is actively considering a buyout in Indonesia. The deal size is expected to be over $100 million.
A senior SBI executive told FE, “The bank has already shortlisted three to four Indonesian banks for the proposed acquisition.” The deal would be SBI's second acquisition in Indonesia. In 2006, SBI had acquired 76% stake in PT Bank Indo Monex, an Indonesia bank, which was renamed as Bank SBI Indonesia—a SBI subsidiary.
"The Indonesian bank, which SBI is eyeing, would be merged with Bank SBI Indonesia that currently offers retail and wholesale banking services through 12 branches in the country," the SBI executive said.
In a bid to capitalise on the rising trade and investment between Indonesia and India, Bank SBI Indonesia had launched its foreign exchange trade facility last month. This facility enables the bank to offer foreign exchange services, trade finance and remittance facilities, and depository advisory services. Indonesia is India's second largest export market in Asean after Singapore. India is one of the largest importers of Indonesian commodities including palm oil, coil and gambier.
Indonesia is ranked 16th as a source of imports for India at $6.1 billion as on March 30, 2009, up 38% over the previous year. Currently, India's investments in Indonesia are at an impressive $2 billion. Indo-Indonesian trade crossed $10.6 billion last fiscal.
Sources reveal that SBI is also assessing a possibility to penetrate in countries such as Thailand and Vietnam. The bank is likely to open a representative office in Malaysia by March 2010. SBI's thrust to capture the lucrative business from the Far East region is evident from its Singapore subsidiary's balance sheet size that crossed $2 billion-mark as on September 30, 2009. SBI Singapore's trade finance business grew over 50% in the last six months.
To promote retail lending in Singapore, SBI is expected to open three new branches and two more off-site ATMs at a cumulative investment of over sing$35 million, and recruit over 60 personnel across various levels in the next 3-4 months. The bank launched its mortgage service on August 9, 2009. Till-date, it has transacted business worth over sing$10 million. SBI Singapore currently operates six branches and five off-set ATMs in the country.
As on March 30, 2009, SBI had 92 overseas offices across 32 countries, comprising of 37 branches, five sub offices, eight representative offices, 35 branches of subsidiaries, three managed exchange.
Showing posts with label Acquisition. Show all posts
Showing posts with label Acquisition. Show all posts
Thursday, October 22, 2009
Sunday, October 18, 2009
Malaysia's RHB to pay $356mln for Bank Mestika
KUALA LUMPUR-
Malaysia's fourth-biggest lender RHB Capital (RHBC.KL) will pay 1.2 billion ringgit ($356.1 million) in cash for a controlling stake in Indonesia's PT Bank Mestika Dharma, joining rivals in the chase to gain a foothold in Southeast Asia's most populous country.
RHB said in a statement ahead of a press conference on Monday that it would also undertake a rights issue of 361 million shares, priced at 3.60 ringgit per share.
Malaysia's top two banks, Malayan Banking (Maybank) (MBBM.KL) and CIMB (CIMB.KL), already have a presence in the underbanked Indonesian market.
Analysts said loans growth in Indonesia's banking market, with its huge population, are expected to grow 15-25 percent this year.
Bank Mestika is based in Medan in Sumatra, Indonesia's third-most populous city after Jakarta and Surabaya.
Malaysia's fourth-biggest lender RHB Capital (RHBC.KL) will pay 1.2 billion ringgit ($356.1 million) in cash for a controlling stake in Indonesia's PT Bank Mestika Dharma, joining rivals in the chase to gain a foothold in Southeast Asia's most populous country.
RHB said in a statement ahead of a press conference on Monday that it would also undertake a rights issue of 361 million shares, priced at 3.60 ringgit per share.
Malaysia's top two banks, Malayan Banking (Maybank) (MBBM.KL) and CIMB (CIMB.KL), already have a presence in the underbanked Indonesian market.
Analysts said loans growth in Indonesia's banking market, with its huge population, are expected to grow 15-25 percent this year.
Bank Mestika is based in Medan in Sumatra, Indonesia's third-most populous city after Jakarta and Surabaya.
Saturday, October 10, 2009
Nishat Group Chmn:To Join Maybank In Buying Stakes In Overseas Bks
KARACHI (Dow Jones)-
Pakistan's Nishat Group said Wednesday it will tie up with Malaysia's Malayan Banking Bhd. (1155.KU), or Maybank, to buy stakes in overseas banks.
"We now plan to move ahead with acquiring stakes in some banks in the Middle East and Indonesia," Nishat Group Chairman Mian Mansha told reporters.
He declined to name the potential targets or the likely investment that could be made.
Mansha said the group's MCB Bank (MCB.KA), in which Maybank is a shareholder, is likely to complete the buyout of the Royal Bank of Scotland Group PLC's (RBS) Pakistan operations in two weeks.
The MCB Bank had bought Royal Bank of Scotland's Pakistan assets in August this year.
Pakistan's Nishat Group said Wednesday it will tie up with Malaysia's Malayan Banking Bhd. (1155.KU), or Maybank, to buy stakes in overseas banks.
"We now plan to move ahead with acquiring stakes in some banks in the Middle East and Indonesia," Nishat Group Chairman Mian Mansha told reporters.
He declined to name the potential targets or the likely investment that could be made.
Mansha said the group's MCB Bank (MCB.KA), in which Maybank is a shareholder, is likely to complete the buyout of the Royal Bank of Scotland Group PLC's (RBS) Pakistan operations in two weeks.
The MCB Bank had bought Royal Bank of Scotland's Pakistan assets in August this year.
Maybank CEO: No immediate plans for new acquisitions
KUALA LUMPUR-
Malayan Banking Bhd (Maybank) chief executive officer Datuk Seri Abdul Wahid Omar has dismissed reports that the group is looking to purchase new banking assets after spending RM11.1bil last year on acquisitions overseas.
“We did three acquisitions last year, and we have enough on our plates. The focus for us now is organic growth,” Wahid, who is also the bank’s president, said at a press conference to launch Maybank’s latest premium debit card product.
Earlier this week, the chairman of Pakistan’s Nishat Group, Mian Mohammad Mansha, was quoted in a foreign news report as saying that MCB Bank Ltd and Maybank may team up to acquire banks in the Middle East and Indonesia.
“It is not true. I believe the chairman’s statement was taken out of context,’’ Wahid said.
Nishat Group owns an estimated 32% stake in MCB Bank, while Maybank owns a 20% share in the Pakistan-based lender.
Wahid also ruled out a possible bid for a strategic stake in Bank Islam Malaysia Bhd.
“This is something which we have not looked into,’’ he said.
Maybank Islamic Bhd is currently the country’s biggest Islamic bank with total assets of RM35bil, and “we believe there is tremendous opportunity to expand our Islamic banking operations organically,’’ according to Wahid.
Last week, Dubai Financial Group confirmed that it was in the process of reviewing its strategic options relating to its 40% stake in Bank Islam.
Maybank Islamic had been previously linked as a possible buyer.
Elaborating on the group’s organic expansion plans, Wahid said this might include setting up Islamic banking operations in Indonesia.
Maybank had earlier announced that its unit Bank Internasional Indonesia (BII) will add 200 new branches to its existing 250 outlets over the next three years.
Wahid is also planning to boost contributions from the group’s operations in the Philippines and Cambodia by opening new branches in the two countries.
Malaysia’s biggest bank is also strengthening its grip in the home market.
In the debit-card business, Maybank has a dominant market share of 80% in terms of total billings and a 26% share of the total 24.4 million debit-card holders in the country.
Wahid estimated that Maybank’s debit-card transactions amounted to about RM120mil a month.“For Maybank MasterCard Platinum Debit, we are targeting to recruit half a million card members in two years,’’ Wahid said, adding that the latest product, aimed at big spenders and rich customers, would boost Maybank’s debit-card billings by 80% by the end of 2010.
Malayan Banking Bhd (Maybank) chief executive officer Datuk Seri Abdul Wahid Omar has dismissed reports that the group is looking to purchase new banking assets after spending RM11.1bil last year on acquisitions overseas.
“We did three acquisitions last year, and we have enough on our plates. The focus for us now is organic growth,” Wahid, who is also the bank’s president, said at a press conference to launch Maybank’s latest premium debit card product.
Earlier this week, the chairman of Pakistan’s Nishat Group, Mian Mohammad Mansha, was quoted in a foreign news report as saying that MCB Bank Ltd and Maybank may team up to acquire banks in the Middle East and Indonesia.
“It is not true. I believe the chairman’s statement was taken out of context,’’ Wahid said.
Nishat Group owns an estimated 32% stake in MCB Bank, while Maybank owns a 20% share in the Pakistan-based lender.
Wahid also ruled out a possible bid for a strategic stake in Bank Islam Malaysia Bhd.
“This is something which we have not looked into,’’ he said.
Maybank Islamic Bhd is currently the country’s biggest Islamic bank with total assets of RM35bil, and “we believe there is tremendous opportunity to expand our Islamic banking operations organically,’’ according to Wahid.
Last week, Dubai Financial Group confirmed that it was in the process of reviewing its strategic options relating to its 40% stake in Bank Islam.
Maybank Islamic had been previously linked as a possible buyer.
Elaborating on the group’s organic expansion plans, Wahid said this might include setting up Islamic banking operations in Indonesia.
Maybank had earlier announced that its unit Bank Internasional Indonesia (BII) will add 200 new branches to its existing 250 outlets over the next three years.
Wahid is also planning to boost contributions from the group’s operations in the Philippines and Cambodia by opening new branches in the two countries.
Malaysia’s biggest bank is also strengthening its grip in the home market.
In the debit-card business, Maybank has a dominant market share of 80% in terms of total billings and a 26% share of the total 24.4 million debit-card holders in the country.
Wahid estimated that Maybank’s debit-card transactions amounted to about RM120mil a month.“For Maybank MasterCard Platinum Debit, we are targeting to recruit half a million card members in two years,’’ Wahid said, adding that the latest product, aimed at big spenders and rich customers, would boost Maybank’s debit-card billings by 80% by the end of 2010.
Monday, September 28, 2009
INDONESIA'S BANK MANDIRI EYEING CONTROLLING STAKE IN AXA MANDIRI
JAKARTA-
Indonesia's PT Bank Mandiri (JSX:BMRI) said it is set to have controlling stake in life insurance company PT Axa Mandiri Financial Service (AMFS), it owns jointly with a French partner.
The state bank and the country's largest lender in assets, owns 49 per cent of Axa Mandiri and France's AXA holds the majority 51 per cent share.
Agus Martowardojo, the president of Bank Mandiri said the bank wants to acquire at least a 2 per cent stake from the AXA group, adding the acquisition process is expected to be completed before the end of this year.
AXA Mandiri has succeeded in banc-assurance business and grown to rank among three largest in life insurance market share in less than two years after its operation in the country. (28th September 2009)
Indonesia's PT Bank Mandiri (JSX:BMRI) said it is set to have controlling stake in life insurance company PT Axa Mandiri Financial Service (AMFS), it owns jointly with a French partner.
The state bank and the country's largest lender in assets, owns 49 per cent of Axa Mandiri and France's AXA holds the majority 51 per cent share.
Agus Martowardojo, the president of Bank Mandiri said the bank wants to acquire at least a 2 per cent stake from the AXA group, adding the acquisition process is expected to be completed before the end of this year.
AXA Mandiri has succeeded in banc-assurance business and grown to rank among three largest in life insurance market share in less than two years after its operation in the country. (28th September 2009)
Wednesday, August 12, 2009
HSBC says lifts stake in Indonesia bank to 98.96 pct
HONG KONG -
HSBC Holdings (HSBA.L) (0005.HK) said it had completed a mandatory tender offer and bought an additional 10.08 percent stake in PT Bank Ekonomi Raharja Tbk (BAEK.JK), raising its stake in the Indonesia bank to 98.96 percent.
HSBC said on Wednesday that it had bought 269.01 million shares of the Indonesia bank held by the general public for 713.4 billion rupiah ($71.98 million).
"The acquisition almost doubled HSBC's presence to 208 outlets in 26 cities in the world's fourth most populous country," HSBC said in the statement.
HSBC had in May set a tender offer price of 2,652 rupiah (US$0.258) per share for the remaining shares in Indonesia's Bank Ekonomi Raharja Tbk (BAEK.JK). From Reuters, Aug 12.
HSBC Holdings (HSBA.L) (0005.HK) said it had completed a mandatory tender offer and bought an additional 10.08 percent stake in PT Bank Ekonomi Raharja Tbk (BAEK.JK), raising its stake in the Indonesia bank to 98.96 percent.
HSBC said on Wednesday that it had bought 269.01 million shares of the Indonesia bank held by the general public for 713.4 billion rupiah ($71.98 million).
"The acquisition almost doubled HSBC's presence to 208 outlets in 26 cities in the world's fourth most populous country," HSBC said in the statement.
HSBC had in May set a tender offer price of 2,652 rupiah (US$0.258) per share for the remaining shares in Indonesia's Bank Ekonomi Raharja Tbk (BAEK.JK). From Reuters, Aug 12.
Monday, August 10, 2009
Bank Islam bids for Bank Muamalat stake-paper
KUALA LUMPUR -
Malaysia's Bank Islam is in talks with several stakeholders in Indonesia's PT Bank Muamalat and wants to take control of the Indonesian Islamic bank, the Business Times reported on Monday.
Without citing named sources, the newspaper said that Bank Islam was close to a deal with at least one of the stakeholders.
No one from Bank Islam was immediately available for comment.
Bank Muamalat's main shareholders are based in the Gulf and it had a net profit of 207 billion rupiah ($20.93 million) in 2008, the paper said.
Malaysia's Bank Islam is in talks with several stakeholders in Indonesia's PT Bank Muamalat and wants to take control of the Indonesian Islamic bank, the Business Times reported on Monday.
Without citing named sources, the newspaper said that Bank Islam was close to a deal with at least one of the stakeholders.
No one from Bank Islam was immediately available for comment.
Bank Muamalat's main shareholders are based in the Gulf and it had a net profit of 207 billion rupiah ($20.93 million) in 2008, the paper said.
Monday, July 27, 2009
BANK RAKYAT INDONESIA SET TO ACQUIRE BANK BUKOPIN
JAKARTA-
PT Bank Rakyat Indonesia (BRI) (JSX:BBRI) said it was eyeing several banks including PT Bank Bukopin (JSX:BBKP) to support its plans to consolidate its business in Indonesia's retail sector.
Sofyan Basir, the president of the state lender, said the bank has enough cash to buy a mid-sized bank with strong credit market in small and medium enterprise and consumer business sector.
Discussion is in progress on acquisition of Bank Bkopin, which is partly owned by the government, Basir was quoted as saying by the newspaper Jakarta Globe.
A source at the office of the state minister for state enterprises said BRI, Indonesia's second largest bank in assets, was set to finalize the acquisition of Bukopin by the end of this year.
PT Bank Rakyat Indonesia (BRI) (JSX:BBRI) said it was eyeing several banks including PT Bank Bukopin (JSX:BBKP) to support its plans to consolidate its business in Indonesia's retail sector.
Sofyan Basir, the president of the state lender, said the bank has enough cash to buy a mid-sized bank with strong credit market in small and medium enterprise and consumer business sector.
Discussion is in progress on acquisition of Bank Bkopin, which is partly owned by the government, Basir was quoted as saying by the newspaper Jakarta Globe.
A source at the office of the state minister for state enterprises said BRI, Indonesia's second largest bank in assets, was set to finalize the acquisition of Bukopin by the end of this year.
Thursday, July 16, 2009
BANK RAKYAT INDONESIA EYEING PT BANK BUKOPIN
JAKARTA-
The management of state bank, Bank Rakyat Indonesia (BRI), is eyeing PT Bank Bukopin (JSX:BBKP), a bank partly owned by the government.
There has been no official talk with Bukopin, but BRI is optimistic the process would go smoothly, BRI director Bambang Supeno said.
BRI failed in its attempt to acquire Bank Tabungan Negara (BTN), another state bank, as the plan was rejected by the House of Representatives.
A decision would be made after a new cabinet was formed following last week's presidential election, Bambang said.
BRI chief commissioner Bunasor Sanim said the bank management had proposed the plan to acquire Bukopin to the board of commissioners.
The management of state bank, Bank Rakyat Indonesia (BRI), is eyeing PT Bank Bukopin (JSX:BBKP), a bank partly owned by the government.
There has been no official talk with Bukopin, but BRI is optimistic the process would go smoothly, BRI director Bambang Supeno said.
BRI failed in its attempt to acquire Bank Tabungan Negara (BTN), another state bank, as the plan was rejected by the House of Representatives.
A decision would be made after a new cabinet was formed following last week's presidential election, Bambang said.
BRI chief commissioner Bunasor Sanim said the bank management had proposed the plan to acquire Bukopin to the board of commissioners.
DBS Bank Targets Local Indonesian Bank
One of Asian top banks, DBS, will expand in Indonesia, The largest Singapore-based bank will also acquire a local bank.
"Bank acquisition is possible as long as it provides us with more value," said Bank DBS Indonesia Commissioner Bernard Tan on Thursday, July 16.
The total assets of DBS Bank reach Sin$182.7 billion in 2008.
Bernard said Indonesia is an important and strategic market due to the high potential of the nation's economic growth.
DBS runs operation in 16 countries worldwide such as the United States, England, China, Japan, Hong Kong, India, South Korea, Malaysia, Philippines, Vietnam, and Taiwan.
"Bank acquisition is possible as long as it provides us with more value," said Bank DBS Indonesia Commissioner Bernard Tan on Thursday, July 16.
The total assets of DBS Bank reach Sin$182.7 billion in 2008.
Bernard said Indonesia is an important and strategic market due to the high potential of the nation's economic growth.
DBS runs operation in 16 countries worldwide such as the United States, England, China, Japan, Hong Kong, India, South Korea, Malaysia, Philippines, Vietnam, and Taiwan.
BRI SAYS MAY BUY STAKE IN BUKOPIN
JAKARTA-
Indonesia's second-largest lender, PT Bank Rakyat Indonesia Tbk (BBRI.JK), is considering buying a stake in lender PT Bank Bukopin, Compliance Director Bambang Supeno said.
Indonesia's second-largest lender, PT Bank Rakyat Indonesia Tbk (BBRI.JK), is considering buying a stake in lender PT Bank Bukopin, Compliance Director Bambang Supeno said.
Wednesday, February 4, 2009
Barclays completes acquisition of Bank Akita
JAKARTA-
UK-based Barclays has completed the acquisition of Bank Akita, which was announced initially in September 2008, following the approval of the Central Bank of Indonesia.
Barclays said that Akita will form part of Barclays global retail and commercial banking (GRCB) emerging markets business.
Barclays intends to rebrand Akita as Barclays Bank Indonesia, at an appropriate date, subject to the necessary approvals.
Following the acquisition, and subject to regulatory approval, Samir Gupta has been nominated as the managing director of Barclays Bank Indonesia and will report to Ahmed Khan, CEO of Barclays GRCB emerging markets. Prior to this appointment, Mr Gupta held the position of retail director for Barclays GRCB emerging markets.
Mr Khan said: "The acquisition of Akita is an excellent fit with Barclays strategy of increasing its presence, over time, in emerging markets with good growth characteristics. Indonesia is a very attractive market, with the fourth largest population in the world, strong economic growth and a low penetration of banking products. It is an exciting opportunity, not just for Barclays, but for the Indonesian consumer who will have access to the global scale and skills of one of the world's leading universal banks."
UK-based Barclays has completed the acquisition of Bank Akita, which was announced initially in September 2008, following the approval of the Central Bank of Indonesia.
Barclays said that Akita will form part of Barclays global retail and commercial banking (GRCB) emerging markets business.
Barclays intends to rebrand Akita as Barclays Bank Indonesia, at an appropriate date, subject to the necessary approvals.
Following the acquisition, and subject to regulatory approval, Samir Gupta has been nominated as the managing director of Barclays Bank Indonesia and will report to Ahmed Khan, CEO of Barclays GRCB emerging markets. Prior to this appointment, Mr Gupta held the position of retail director for Barclays GRCB emerging markets.
Mr Khan said: "The acquisition of Akita is an excellent fit with Barclays strategy of increasing its presence, over time, in emerging markets with good growth characteristics. Indonesia is a very attractive market, with the fourth largest population in the world, strong economic growth and a low penetration of banking products. It is an exciting opportunity, not just for Barclays, but for the Indonesian consumer who will have access to the global scale and skills of one of the world's leading universal banks."
Foreign Investors Still Interested in Bukopin
Jakarta-
PT Bank Bukopin CEO Glen Glenardi said foreign investors are still attracted to Bank Bukopin to be their strategic investor. The plan is being delayed due to the economic downturn. "They are still biding their time," Glen said in Jakarta yesterday.
Bukopin also said it was continuing with its rights issue plans, scheduled to take place during the first semester of 2009. The company will offer 20 – 30 percent of its share to the current shareholders in order to support Bukopin's business and to add the capital sufficiency ratio which is currently at 11 percent.
According to Glen, Bukopin's rights issue was supposed to happen in 2008, targeting earnings of about Rp800 billion to Rp1 trillion. However, the unsupportive market situation forced them to cancel the plan. This year, Bukopin has targeted funds from third parties fund to increase by 20 – 30 percent from last year's Rp27 trillion.
Besides the rights issue, Bukopin will also launch 30 micro- financial institutions in February 2009. These institutions are intended to counsel small and medium-scale businesses through cooperation with the community or through partnerships. 29th January 2009 By Tempo Interactive
PT Bank Bukopin CEO Glen Glenardi said foreign investors are still attracted to Bank Bukopin to be their strategic investor. The plan is being delayed due to the economic downturn. "They are still biding their time," Glen said in Jakarta yesterday.
Bukopin also said it was continuing with its rights issue plans, scheduled to take place during the first semester of 2009. The company will offer 20 – 30 percent of its share to the current shareholders in order to support Bukopin's business and to add the capital sufficiency ratio which is currently at 11 percent.
According to Glen, Bukopin's rights issue was supposed to happen in 2008, targeting earnings of about Rp800 billion to Rp1 trillion. However, the unsupportive market situation forced them to cancel the plan. This year, Bukopin has targeted funds from third parties fund to increase by 20 – 30 percent from last year's Rp27 trillion.
Besides the rights issue, Bukopin will also launch 30 micro- financial institutions in February 2009. These institutions are intended to counsel small and medium-scale businesses through cooperation with the community or through partnerships. 29th January 2009 By Tempo Interactive
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