OCBC to take majority stake in NISP

OCBC to take majority stake in NISP

Agence France-Presse,
Singapore

Singapore's Oversea-China Banking Corp (OCBC) said Thursday it
would acquire next year a majority stake in Indonesia's Bank NISP
as it seeks to expand its presence across the region.

OCBC's wholly owned subsidiary, OCBC Overseas Investments,
will raise its stake in Bank NISP, Indonesia's fourth oldest and
12th largest bank, by 28.5 percent to 51 percent, subject to
regulatory approval in both countries.

OCBC said in a statement it had entered into a conditional
sale and purchase agreement with several Bank NISP shareholders,
including members of the Surjaudaja family.

It said it expected the tender offer to be launched and
completed within three to six months.

Although the sale price will not be determined until
regulatory approval is granted, OCBC will expect to pay about
A$160 million (US$98.1 million), based on the Indonesian bank's
value as of Sept. 30.

"With majority control of Bank NISP, OCBC Bank will be well-
positioned to achieve its objective of having a significant
presence in Indonesia, the bank's third major market," OCBC said
in the statement.

The statement also quoted Bank NISP president director
Pramukti Surjaudaja as welcoming the deal.

"I am confident that having OCBC Bank as a majority
shareholder will not only strengthen the ownership structure of
the bank but also better position us to anticipate the Indonesian
banking landscape and capture a bigger slice of the growth
opportunities in Indonesia," he said.

"This will significantly benefit our customers, employees,
investors and other stakeholders."