Thailand-based Kasikornbank (KBank) has announced plans to buy a majority stake in Indonesia’s Bank Maspion in a deal valued at $220m (BKK7.5bn).

The transaction, which will see KBank acquire a 67.5% stake in Bank Maspion, will be undertaken via KBank’s wholly-owned subsidiary Kasikorn Vision Financial.

Bolstering presence in Indonesia is part of KBank’s strategy to expand its presence in ten Southeast Asian markets.

The deal will give KBank access to the banking market in Indonesia, where it operates a representative office only and is not allowed to offer loans or other banking services.

With $1.1bn in assets, Bank Maspion operates 12 branches across the country.

The bank is backed by Maspion Group, which has operations in areas such as consumer products and services, trading, distribution, and hotel among others.

KBank’s latest acquisition builds on its $20m investment in Bank Maspion for a nearly 10% stake. The deal marked Thai bank’s foray into the Indonesian market.

In 2020, KBank bought a 35% stake in Myanmar-based Ayeyarwaddy Farmers Development Bank.

It also has branches in Cambodia and Laos and offices in Vietnam.

Indonesia, which is among the largest economies in the region, has become an attractive market for banks in Thailand because the slow growth, low-interest rates, and high household debt at home have impacted profits.

In 2020, Thai lender Bangkok Bank bought Indonesia’s Bank Permata in a deal worth $2.28bn.