Thailand’s Bangkok Bank is set to acquire an 89.1% stake in Indonesia’s PT Bank Permata for nearly $2.67bn.

The Thai lender has signed a conditional share purchase agreement to acquire the majority stake in Bank Permata from Standard Chartered Bank and PT Astra International.

Bank Permata is the 12th largest bank in Indonesia by total assets offering retail banking, SME and wholesale banking services. The lender operates 330 branches in the country, reported Reuters.

Standard Chartered Bank and PT Astra International each held 44.56% in Permata.

Bangkok Bank president Chartsiri Sophonpanich said: “Based on our firsthand experience in Indonesia and deep understanding of the banking sector, we believe that the Indonesian banking sector is poised to continue delivering attractive growth while maintaining healthy margins.

“Permata offers us a solid scalable platform with capabilities that complement our strategic objectives, including an extensive distribution network, a strong retail deposit franchise and brand, and advanced digital capabilities.”

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Bank Permata acquisition: More details

Bangkok Bank will finance the acquisition through a combination of existing resources and its routine funding activities.

Once complete, the deal is expected to be immediately accretive to the Thai lender’s earnings per share and return on equity.

It also plans to conduct a mandatory tender offer to purchase the remaining 10.88% stake in Permata after the current deal closes.

The Bank Permata acquisition is slated to close next year, subject to regulatory and shareholders approvals.

Established in 1944, Bangkok Bank is one of the largest lenders in Thailand by deposits and shareholders’ equity.

As of 30 September 2019, the bank had total assets of $105bn and around 1,200 branches across the country.

Bangkok Bank also operates a strong overseas network with presence in 14 countries.