Jakarta – Standard Chartered PLC (“Standard Chartered”) and PT Astra International Tbk (“Astra” and together the “Sellers”) have today entered into a conditional share purchase agreement (the “Agreement”) to sell their respective 44.56 per cent stakes in PT Bank Permata Tbk (“Permata”) in Indonesia to Bangkok Bank Public Company Limited (“Bangkok Bank”).
Completion of the transaction is subject to certain conditions including approvals by the shareholders of Bangkok Bank and the receipt of the applicable regulatory approvals in Indonesia and Thailand, which we hope to achieve by the end of 2020.
Bangkok Bank has agreed to acquire an 89.12 per cent stake in Permata from the Sellers in an
all-cash deal. The purchase price will be a 1.77 times multiple of the shareholders’ equity balance (“Book Value”) as per the most recent financial results of Permata prior to completion. If based on Permata’s 30 September 2019 Book Value, the total consideration to the Sellers would be approximately US$2.6 billion (IDR 37 trillion), equivalent to a price of IDR 1,498 per Permata share.
Bill Winters, Group Chief Executive of Standard Chartered said, “The sale of our stake in Permata will allow us to focus on our wholly-owned business in the large and strategically important Indonesian market; and will release capital for reinvestment or return to shareholders. This transaction further demonstrates our focus on executing the refreshed strategic priorities we announced earlier this year, at pace.”
Prijono Sugiarto, President Director of Astra said, “We regularly carry out strategic reviews of our investment portfolio and make decisions which take into account the best interests of all stakeholders. Our decision on Permata takes into consideration its improved performance, the positive prospects of Indonesia’s financial services industry and our strategy to focus on strengthening our existing position as a retail financial services provider in Indonesia.” Prijono, also said, “Bangkok Bank is one of the largest banks in Thailand and well capitalised. Existing business relationships between Astra Group and Permata will continue as usual and we will be exploring new areas of cooperation.”
J.P. Morgan acted as financial advisor to Astra and Standard Chartered.
Please follow this link to the Standard Chartered disclosure announcement in accordance with the UK Listing Rules: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/STAN/14346198.html
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Note to Editors:
About STANDARD CHARTERED:
Standard Chartered is a leading international banking group, with a presence in 60 of the world’s most dynamic markets, and serving clients in a further 85. Standard Chartered’s purpose is to drive commerce and prosperity through its unique diversity, and its heritage and values are expressed in its brand promise, Here for good.
Standard Chartered is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India.
Permata is one of the leading banks in Indonesia with total assets of approximately US$10.9 billion and total shareholders’ equity of approximately US$1.7 billion as of the quarterly report ending 30 September 2019. For the 9-month interim period ending 30 September 2019, Permata reported net income of approximately US$77 million.
Headquartered in Jakarta, the bank has a network that is spread across 62 cities with 332 outlets (including branches and mobile branches) and nearly 7,700 employees. Permata offers banking products and services in Indonesia to help people and companies to succeed, creating wealth and growth through its retail banking, SME and wholesale businesses.
Permata is listed on the Indonesia Stock Exchange under the symbol ‘BNLI’.
For further information, please visit http://www.permatabank.com.
PT Astra International Tbk was established in 1957 in Jakarta as a general trading company under the name Astra International Inc. In 1990, for the purpose of the company’s initial public offering (IPO), the name of the company changed to PT Astra International Tbk, followed by listing its shares on the Indonesia Stock Exchange under the ticker code ASII.
Astra has developed its business by implementing a business model based on synergies and diversification within seven business segments, consisting of: 1) Automotive, 2) Financial Services, 3) Heavy Equipment, Mining, Construction & Energy, 4) Agribusiness, 5) Infrastructure and Logistics, 6) Information Technology and 7) Property.
Astra conducts business operations in all parts of Indonesia under the management of more than 230 subsidiaries, joint ventures and associate companies, and was supported by more than 226,000 employees, as of September 2019.
As one of the largest national business groups today, Astra has built a strong reputation through offering a range of quality products and services, taking into account the implementation of good corporate governance and environmental governance. Astra always aspires to be the pride of the nation that participates in efforts to improve the welfare of the Indonesian people.
Therefore, Astra’s business activities strive to apply a balanced mix in the commercial aspects of business and non-business contributions through 9 foundations, also through a variety of sustainable social responsibility programmes in the fields of health, education, the environment and the development of small and medium-sized enterprises (SMEs). Astra initiated the Semangat Astra Terpadu Untuk (SATU) Indonesia Awards programme, which has entered a decade this year, and has given recognition awards to 305 young Indonesians, consisting of 59 national level recipients and 246 provincial level recipients in the fields of Health, Education, the Environment, Entrepreneurship and Technology, which are integrated with Astra’s wide range of community activities focused on health, education, the environment and entrepreneurship through 86 Kampung Berseri Astra and 645 Desa Sejahtera Astra initiated in 34 provinces throughout Indonesia.