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."