Kbank invests 6.5 billion baht to hold a total share of 67.5% of Bank Maspion
Kasikorn Vision Financial Company Pte. Ltd. (KVF) has completed the acquisition of additional shares of PT Bank Maspion Indonesia Tbk, with an investment value of USD 186.5 million (THB 6.528 billion), increasing Kbank’s total shareholding of Bank Maspion to 67.5%.
This investment is expected to generate new opportunities and help business entities access financial services while fortifying customers’ networks across Indonesia, thereby reiterating Kbank’s prominent leadership as a regional bank of AEC+3 in financial services offerings and technological capabilities.
Pattarapong Kanhasuwan, KVF's Chairman, has asserted that Kbank never ceased its zealous efforts to continue to expand and lead the financial panorama of Southeast Asia, particularly in Indonesia where the market has plenty of room for growth.
With such commitment, KVF, upon the approval of Bank Indonesia (BI), has successfully purchased additional shares of Maspion Bank to hold no less than 67.5 % of its total shareholding, with an investment value of USD 186.5 million (THB 6.528 billion). This accomplishment has subsequently led Kbank to become the controlling shareholder of Bank Maspion.
The acquisition of Bank Maspion, with an asset size of USD 888 million (THB 31.106 billion) including its 50 branches across Indonesia, has become Kbank’s first Merger and Acquisition deal within the group’s regional expansion strategy.
The success of the deal has taken place at the right time and the right moment not only in terms of the exponential growth in Indonesia’s loan demand, the recovering stage of the Indonesian economy during the post-covid pandemic, but also the promptness of the country to provide basic infrastructure thanks to increasing domestic investment, consumer spending, and exports.
Therefore, Kbank has profoundly pledged to be part of the steering mechanism that drives Indonesia’s economy by bringing to the table its unequivocal 77-year of experience, along with its cutting-edge technology and banking expertise of Kasikorn Business Technology Group (KBTG), a technological arm of Kbank, to solidify banking landscape of PT. Bank Maspion and drive it to become the largest bank in East Java, which, in turn, will meaningfully support Indonesia’s long-term economic growth.
In doing so, Bank Maspion has pursued multifaceted strategies in three different customer segments, including corporate/large businesses (Corporate), medium-sized businesses (Commercial) and retail customers (Retail).
Corporate/Large Corporate Segment
PT. Bank Maspion has witnessed the growth potential of large local corporates (LLC) as an essential driving mechanism that deliberately gears Indonesia’s industrial sector. Essentially, the Bank aims to become a major funding source for such LLC customers by accelerating corporate lending offerings, in accordance with the industrial transformation and a unified domestic market.
Furthermore, PT. Bank Maspion supports foreign direct investment and economic development of Indonesia enabled by the National Development Plan. Not only will the plan help bring about a buoyant economy to the country, but it will particularly form an enabling investment environment that would lure capital and opportunities, particularly from Thai businesses (TDI) and foreign companies from AEC+3 countries.
PT. Bank Maspion has placed an emphasis on providing lending support by promoting financial credits to serve the unmet needs of medium-sized businesses, thereby helping them unlock their potential and efficiently operate their businesses. Moreover, the Bank will leverage Kbank’s technological capabilities to bolster transactional banking services, which is strategic to levelling up the business playing fields of commercial customers while propelling them to grow into large-scale businesses in the future.
Finally, PT. Bank Maspion seeks to address the needs and provide accessibility for the larger pool of customers, the Indonesian people. In doing so, the Bank will employ mobile banking services, with developed functions and features, to additionally grasp a better understanding of customers’ behaviour. Thanks to the increasing usage of digital channels in Indonesia, PT. Bank Maspion believes that such a strategy will enhance the overall customer experience in all spectrums of financial services and eventually serve the evolving digital landscape of Indonesia.
In all, Pattarapong addressed that Kbank’s strengths in financial services and technological capabilities, together with Bank Maspion’s local banking expertise, are believed to bring about new prospects and enable businesses in Indonesia to access suitable financial services and efficiently grow their businesses. More importantly, Kbank will leverage its vast pool customer base in Thailand and in the region to create business networks in different aspects of the value chain and trade and investment spectrums—all of which are strategic to support business operations in Thailand, Indonesia, and other Southeast Asian countries going forward.
The acquisition of Indonesia’s Maspion Bank in 2022 is recent Kbank’s key strategy to advance its position as a regional bank of AEC+3 following the launching of its operations in Lao PDR in 2014, obtaining of an operating license in China in 2016, the opening of Phnom Penh branch in Cambodia in 2017, and the inaugural of the Ho Chi Minh City branch in Vietnam in 2021.