hsbc-buys-indonesias-bank-ekonomi

HSBC buys Indonesia's Bank Ekonomi

HSBC pays $607.5 million for a majority stake in the bank, which will add to its commercial banking business and double its branch network in Indonesia.
October 20, 2008
The Hongkong and Shanghai Banking Corporation, through its wholly owned subsidiary HSBC Asia Pacific Holdings UK, will acquire 88.9% of PT Bank Ekonomi Raharja for $607.5 million in cash. HSBC will fund the deal through its own resources.

Bank Ekonomi was established in 1989 and is listed on the Indonesia Stock Exchange. It had 86 outlets across Indonesia providing retail banking services and assets of around $1.8 billion as at the end of September 2008. Bank Ekonomi also provides commercial banking services.

Based on its share price on October 17, Bank Ekonomi had a market capitalisation of Rp4.62 trillion $482 million. HSBC is paying a 42% premium to Bank EkonomiÆs market cap.

Bank...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222