HSBC to acquire Bank Ekonomi to double presence

The Jakarta Post | Mon, 10/20/2008 8:07 PM

HSBC Holdings announced in London on Monday it would acquire majority ownership of Indonesia-based Bank Ekonomi for US$607.5 million, as a step toward doubling its presence in the country.

HSBC would acquire a 38.84 share in Ekonomi from PT Lumbung Artakencana, 38.6 percent from PT Alas Pusaka and 11.45 percent from individual shareholders, giving it 88.89 percent ownership of the thriving bank.

Under Indonesian law, HSBC will be required to make a mandatory tender offer for the outstanding 10.11 percent of Bank Ekonomi.

"The acquisition will enhance HSBC's commercial banking business in Indonesia, extend the group's presence in the retail banking sector and almost double HSBC's network to more than 190 outlets in 24 cities across the country," HSBC says. (and)