HSBC to acquire Bank Ekonomi of Indonesia
HSBC Holdings plc, through its wholly-owned subsidiary HSBC Asia Pacific Holdings (UK) Limited, has entered into agreements to acquire 88.89 per cent of PT Bank Ekonomi Raharja Tbk (Bank Ekonomi) for a consideration of US$607.5 million to be paid in...
HSBC Holdings plc, through its wholly-owned subsidiary HSBC Asia Pacific Holdings (UK) Limited, has entered into agreements to acquire 88.89 per cent of PT Bank Ekonomi Raharja Tbk (Bank Ekonomi) for a consideration of US$607.5 million to be paid in cash from HSBC's own resources.
The acquisition will enhance HSBC's commercial banking business in Indonesia, extend the group's presence in the retail banking sector and almost double HSBC's network to over 190 outlets in 24 cities across the country.
Bank Ekonomi was established in 1989 and is listed on the Indonesian Stock Exchange. It has 2,200 staff and 86 outlets across Indonesia and assets of approximately US$1.8 billion at the end of September 2008. In addition to its retail banking operations, Bank Ekonomi is one of Indonesia's largest providers of commercial banking services. At October 17, Bank Ekonomi had a market capitalisation of approximately US$482 million and reported profit before tax for the nine months to September 30 of approximately US$24 million.
HSBC Malta CEO Alan Richards commented: "This acquisition underlines HSBC Group's strategy to invest in fast growing emerging markets. The acquisition of Bank Ekonomi also doubles HSBC's footprint in the world's fourth most populous nation. GDP in Indonesia has grown at over 5.5 per cent in each of the past three years."