Sumitomo Mitsui Banking Corp has agreed to acquire nearly 40% of BTPN the Indonesian financial institution. This acquisition would provide the Japanese bank an entry way into the fastest growing economy in Southeast Asia.
The pursuit by SMBC of the seventh largest bank in Indonesia indicates the continued push overseas by Japanese firms to compensate the low growth in Japanese markets.
The sale would be done in two tranches, with the first comprising 24.26% of BTPN at 6,500 rupiah per share. According to Reuters data, the price includes a 14% premium from the last traded price of the bank's share. This would total 9.12 trillion rupiah or US$937 million for the purchase.
The shares would be coming from TPG Capital, nearly 71.6% of the Bank Tabungan Pensiunan Nasional Tbk PT was purchased back in 2008.
The purchase is considered would be one of the most expensive deals in Asia to date, with a price to book ratio of about 4.5 according to calculations made by Reuters.
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