[THE INVESTOR] Government-run Industrial Bank of Korea will acquire stake in a second Indonesian bank, Bank Mitraniaga, as it seeks to set up operations in the country this year, the company said on April 25.
Korea’s sixth-largest bank in terms of assets will acquire a 71.7 percent stake in the Jakarta-based bank with 13 branches from Willy Yonathan, president commissioner at Bank Mitraniaga. The deal is subject to Indonesian authorities’ approval.
IBK CEO Kim Do-jin |
“IBK Indonesia could be launched by the end of 2018, if everything goes well,” Lee Dae-sung, head of the bank’s Global Business Team, told The Investor.
IBK Korea acquired an 82.59 percent state in Indonesia-listed lender Bank Agris in February for an undisclosed amount, marking the first overseas acquisition among Korean policy banks. The M&As come less than two years after IBK CEO Kim Do-jin promised overseas takeovers during his three-year tenure.
The Indonesian financial authorities, which are trying to trim the number of some 110 local banks, allow foreign investors to buy a stake in a bank of up to 40 percent if the investor purchase stake in one bank. But those that invest in two or more banks are exempt from such restrictions.
With a population of 261 million and an estimated 2,000 Korean companies there, Indonesia has been a primary acquisition target for IBK’s overseas venture.
By Park Ga-young (gypark@heraldcorp.com)