OCBC to acquire Indonesia’s Bank Commonwealth for $191.4m

PT Bank OCBC bought almost 100% shares in PT Bank Commonwealth.

OCBC Bank, through its Indonesian subsidiary PT Bank OCBC NISP Tbk, bought 99% of shares in PT Bank Commonwealth (PTBC) from the Commonwealth Bank of Australia (CBA).

Alongside the PTBC acquisition with a value of $191.4m (IDR2.2m), the company also set plans to buy 1% of the remaining shares of PTBC from its respective shareholders.

Under the acquisition, PTBC will be merged into OCBC Indonesia, and both banks will work together for the smooth migration of customers and employees to OCBC.

PT Bank OCBC is the fourth largest private bank by asset value in Indonesia, with a total consolidated resource of $21.5b (IDR247.0t), a 12% increase from the previous year. Its capital adequacy ratio (CAR) has endured at 23.2%, building up its growth throughout time.

The market for PTBC is targeted at retailers with small and medium enterprises. The bank’s net asset value and net tangible asset value are at $356m (IDR4.1t) and $308m (IDR3.5t), respectively. The acquisition will strengthen the relationship that both parties have with their clients.

Customer businesses and transactions will remain unaffected by the proposed purchase, expected to last until 31 December 2023.

The acquisition is undergoing regulatory approvals from the Financial Services Authority of Indonesia (Otoritas Jasa Keuangan), the Annual General Meeting of Shareholders (AGMS), and other bureaus.

$1 = IDR 11510.29