Standard Chartered Bank (SCB) and Indonesian conglomerate Astra International have agreed to sell their 89.1% stake in Indonesia’s Bank Permata at a reduced price.
Thailand’s Bangkok Bank agreed to acquire Standard Chartered and Astra stakes in PT Bank Permata for nearly $2.67bn in December last year.
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As per the initial agreement, the banks would have received consideration equivalent to 1.77 times of Permata’s book value. This has now been slashed to 1.63 times of Permata’s book value as of 31 March 2020.
SCB and Astra International jointly control Bank Permata with each holding 44.56% stake in the bank.
As a result, both the banks are entitled to receive nearly IDR17trn ($1.06bn) each in cash, down from IDR20.27trn ($1.3bn) estimated in December last year.
The revised valuation is as a result of reduction in Permata’s equity and depreciation of the Indonesian Rupiah (IDR) against US Dollar (USD).
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By GlobalDataSCB claims that the deal will increase its Common Equity Tier 1 (CET1) capital ratio to around 40 basis points.
The Bangkok Bank shareholders approved the stake purchase in the Indonesian lender, which operates 330 branches across 62 cities in Southeast Asia’s biggest economy.
The transaction is subject to the receipt of regulatory approvals.
