Heaptalk, Jakarta — PT Bank OCBC NISP (OCBC Indonesia) announced its plan to buy 99% of shares in PT Bank Commonwealth (Commonwealth Bank) with an estimated value of Rp2.2 trillion, approximately US$142 million (US$1 equals Rp15,493).
This plan was marked by the signing of a Sale and Purchase Agreement (SPA) with the Commonwealth Bank of Australia (11/16). The Bank will use internal cash to fund the acquisition plan.
Moreover, OCBC Indonesia also intends to acquire the remaining 1% of Commonwealth Bank shares but still waiting for the approval of several parties, including the Financial Services Authority (OJK), the General Meeting of Shareholders, and the fulfillment of other conditions.
By this acquisition, Commonwealth Bank will be integrated into OCBC Indonesia. This step is taken to increase the company’s business scale as Commonwealth Bank has an attractive and complementary client base in the consumer and SME (retail) customer segments.
“This acquisition plan aims to strengthen and complement OCBC Indonesia’s capabilities in providing comprehensive financial services for both the consumer and MSME segments,” stated President Director of OCBC Indonesia Parwati Surjaudaja.
Expanding products and service offerings
Further, OCBC Indonesia is optimistic that the merger of these two banks can strengthen its platform in taking advantage of growth opportunities in financial services in Indonesia. Commonwealth Bank has complementary capabilities in wealth management and automatic joint financing. This capability can be utilized to expand OCBC Indonesia’s product and service offerings.
Recently, the Bank carried out rebranding with a new name and logo ‘OCBC‘ which is effective as of November 14, 2023. This new identity is part of a transformation that encourages the company to continue to level up and grow sustainably. This change in brand name and logo does not affect the Bank’s legal name, namely PT Bank OCBC NISP Tbk.
Founded in Bandung in 1941 with the name Nederlandsch Indische Spaar en Deposito Bank, currently OCBC Indonesia is the 4th largest private bank in Indonesia based on bank assets as of August 31, 2023. Total consolidated assets amounted to Rp247.0 trillion, increasing 12% from the previous year in the same period.
The Bank’s capital adequacy ratio or CAR remains strong at 23.2%, above the minimum requirement. As of September 30, 2023, the Bank recorded credit growth of 10% to Rp144.7 trillion compared to the same period last year.
