Thursday, December 12, 2019
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