HSBC is set to integrate operations of Bank Ekonomi, which is 98.94% owned by HSBC Asia Pacific Holdings (UK) Limited, with its main Indonesian branch operations due to the illiquidity of shares.
At the same time, Bank Ekonomi is planning to delist from the Indonesia Stock Exchange and convert from a public listed company to a private company owing to the illiquidity of its shares.
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HSBC, in a statement to the London Stock Exchange, said: "Bank Ekonomi has requested that the trading of its shares be suspended by the Indonesia Stock Exchange with effect from the commencement of trading tomorrow.
"As a result of the above, HSBC will plan for an integration of the business operations of Bank Ekonomi and HSBC’s Indonesian branch, subject to, amongst other things, applicable laws and regulations."
HSBC acquired 88.9% stake in the Indonesian lender in October 2008 for $607.5m. It paid another $71.6m in August 2009 for an additional 10% stake.
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