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Takeover in Indonesia 'to boost BBL's growth'

Dec 14. 2019
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By THE NATION

The chairman of Bangkok Bank's board of executive directors, Deja Tulananda, said on Friday (December 13) that he is confident the bank's decision to take over Indonesian bank PT Bank Permata Tbk (Permata) would be a profitable investment.

He added that the deal, which was announced on December 12, will help expand BBL's growth in the long-term.

BBL share price on Friday plunged 6.19 per cent to close at Bt151.50, given that some stock investors are doubtful the deal can create seamless synergy between the two banks to boost BBL growth, especially in the digital banking domain.

He added that when the stock investors gain more and more information of the deal, they will see its long-term benefit and gain more confidence in the deal.

He reiterated that the price BBL will pay for Pertama's shares is not too high and there is still ample room for growth in Indonesia.

BBL announced on December 12 its entry into a conditional share purchase agreement with Standard Chartered Bank (Standard Chartered) and PT Astra International Tbk (Astra) to acquire their aggregate 89.12 per cent shareholding in Permata.

BBL said that the acquisition of Permata underlines its commitment to Indonesia, having been present here since 1968, and will further strengthen its position as a regional player with strong positioning in Thailand and Indonesia, the two largest markets in Asean.

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