OCBC Completes Acquisition of Indonesia PT Bank Commonwealth with 1.2 Million Customers from Commonwealth Bank of Australia for $191 Million, OCBC Indonesia Provides Full Range of Banking Services Including Wealth Management, Private Banking, SMEs & Large Corporations
2nd May 2024 | Hong Kong
OCBC has completed the acquisition of Indonesia PT Bank Commonwealth with 1.2 million customers from Commonwealth Bank of Australia for $191 million. OCBC Indonesia provides a full range of banking services including wealth management, private banking, and serving SMEs & large corporations. Announcement (2/5/24): OCBC’s Indonesian subsidiary, PT Bank OCBC NISP Tbk (“OCBC Indonesia”), has completed the acquisition of PT Bank Commonwealth Indonesia (“PTBC”) on 1 May 2024. OCBC Indonesia now owns 100% of PTBC’s shares, making PTBC a wholly-owned subsidiary of OCBC Indonesia. The acquisition brings more than 1.2 million PTBC customers to OCBC Indonesia. PTBC brings with it demonstrated capabilities in wealth management where it has been a pioneer, having been the first bank to obtain a licence as a Mutual Fund Sales Agent from Indonesia’s financial services authority, BAPEPAM-LK (now known as Otoritas Jasa Keuangan). PTBC will continue to operate independently until the integration process is completed. This is targeted to be in the fourth quarter of 2024. During this period, PTBC will serve its customers as usual with its banking products and services, including banking transactions at PTBC’s branches and through digital channels. OCBC Indonesia offers a full range of services to individuals across segments including Private Banking, as well as SMEs and large corporations. These customers are served through mobile and internet banking channels, as well as OCBC Indonesia’s network of around 200 branches. The bank holds one of the highest credit ratings in Indonesia, namely AAA(idn)/stable from PT Fitch Ratings Indonesia. This acquisition underscores Indonesia’s continued importance to OCBC Group. It is one of the Group’s core markets together with Singapore, Malaysia and Greater China, and presents many opportunities as ASEAN’s largest economy and the world’s fourth most populous country. China is Indonesia’s largest trading partner and Indonesia’s second largest investor. Combining PTBC’s capabilities with OCBC Indonesia’s enables OCBC Group to better capture the opportunities from the increasing ASEAN-Greater China wealth, trade and investment flows, in line with the Group’s corporate strategy. The acquisition is the latest strategic milestone for OCBC in Indonesia. It became the first Singapore bank to acquire a banking stake in Indonesia with the acquisition of a 22.5% stake in PT Bank NISP Tbk (“Bank NISP”) in 2004 – a stake that has increased over the years to the current 85%. Bank NISP was renamed to become PT Bank OCBC NISP Tbk (“Bank OCBC NISP”) in 2008. In 2023, in line with OCBC’s brand refresh, Bank OCBC NISP changed its brand name to OCBC Indonesia and adopted OCBC’s refreshed logo. Its legal name remains as PT Bank OCBC NISP Tbk.”
“ OCBC Completes Acquisition of Indonesia PT Bank Commonwealth with 1.2 Million Customers from Commonwealth Bank of Australia for $191 Million, OCBC Indonesia Provides Full Range of Banking Services Including Wealth Management, Private Banking, SMEs & Large Corporations “
Helen Wong, Group CEO of OCBC: “With the acquisition process now complete, our immediate priority is to ensure the successful operational integration of PT Bank Commonwealth Indonesia into OCBC Indonesia. We are working closely with its management team and are committed to a smooth transition for the customers and employees. Customers of both banks have a lot to look forward to as we leverage our complementary strengths to expand our product and services offerings in Indonesia. This acquisition builds on our already strong presence in Indonesia. It signals our commitment to accelerating growth in the country, and to support our customers as they seek growth across multiple markets. Rising ASEAN-Greater China flows is a focal point of Asia’s growth story and a big opportunity for us. Chinese companies for instance, are looking to expand into Indonesia to tap its large young population and abundance of natural resources. Continuously strengthening our network across ASEAN and Greater China, and presence in other global financial centres, is therefore imperative to our strategy.”
OCBC to Acquire 99% of Indonesia PT Bank Commonwealth from Commonwealth Bank of Australia for $191 Million, Intends to Acquire Remaining 1% from Other Shareholders
17th November 2023 – OCBC has announced to acquire 99% of Indonesia PT Bank Commonwealth from Commonwealth Bank of Australia for $191 million, and intends to acquire the remaining 1% from other shareholders. OCBC: “PTBC focuses on retail and small and medium-sized enterprises segments, providing a range of banking and wealth management products. Based on PTBC’s unaudited financial statements as at 30 September 2023, the net asset value and net tangible asset value of PTBC was IDR4.1 trillion and IDR3.5 trillion (approximately S$356 million and S$308 million), respectively. The Proposed Acquisition is subject to amongst others, regulatory approvals from Financial Services Authority of Indonesia (Otoritas Jasa Keuangan) and the Monetary Authority of Singapore. Upon the completion of the Proposed Acquisition, PTBC will be a subsidiary of OCBC Indonesia. OCBC Indonesia has sufficient financial resources, through its own internal cash, to fund the Proposed Acquisition.” More info below:
OCBC to Acquire 99% of Indonesia PT Bank Commonwealth from Commonwealth Bank of Australia for $191 Million
16th November 2023 – Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) wishes to announce that its subsidiary, PT Bank OCBC NISP Tbk (“OCBC Indonesia”), has on 16 November 2023 entered into a Share Sale and Purchase Agreement (“SPA”) to acquire 99% of the issued ordinary shares in PT Bank Commonwealth (“PTBC”) from Commonwealth Bank of Australia. OCBC Indonesia also intends to acquire the remaining 1% of the issued ordinary shares in PTBC from the other shareholders.
PTBC focuses on retail and small and medium-sized enterprises segments, providing a range of banking and wealth management products. Based on PTBC’s unaudited financial statements as at 30 September 2023, the net asset value and net tangible asset value of PTBC was IDR4.1 trillion and IDR3.5 trillion (approximately S$356 million and S$308 million), respectively. The Proposed Acquisition is subject to amongst others, regulatory approvals from Financial Services Authority of Indonesia (Otoritas Jasa Keuangan) and the Monetary Authority of Singapore. Upon the completion of the Proposed Acquisition, PTBC will be a subsidiary of OCBC Indonesia. OCBC Indonesia has sufficient financial resources, through its own internal cash, to fund the Proposed Acquisition.
The Proposed Acquisition is not expected to have any material impact on the net tangible assets, earnings per share or capital position of OCBC Bank for the financial year ending 31 December 2023. It is envisaged that PTBC will be merged into OCBC Indonesia after the Proposed Acquisition. OCBC Indonesia will be working closely with PTBC on the migration of customers and employees to ensure a smooth transition. The Proposed Acquisition adds scale to OCBC Indonesia and deepens OCBC Bank’s presence in Indonesia. PTBC’s customer base of retail and small and medium-sized enterprise customers is complementary with OCBC Indonesia. As there is little overlap in customer relationships between OCBC Indonesia and PTBC, the Proposed Acquisition is expected to create synergies and strengthen the franchise value of OCBC Indonesia.”
None of the Directors or controlling shareholders of OCBC Bank has any interest, direct or indirect, in the Proposed Acquisition.
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