Indonesia's state-run PT Bank Mandiri is exploring a takeover of PT Bank Permata, a rival lender held by Standard Chartered, according to various media reports.
Bank Mandiri is working with Morgan Stanley on a potential deal to take over Bank Permata, according to the sources quoted in «Bloomberg» (behind paywall). The sources asked not to be identified because the information is private.
It is considering to purchase control of Permata and then merging the lender with Mandiri itself or it's unit Bank Mandiri Taspen (also known as Bank Mantap), the people said. Mandiri aims to complete the potential acquisition this year if it decides to proceed. Shares of Permata have risen 76 percent this year, putting its market value at about $2.2 billion.
Non-Core For Standard Chartered
Standard Chartered and Jakarta-listed conglomerate PT Astra International each own about 44.6 percent of Permata, data compiled by Bloomberg show. Permata is the 11th largest Indonesian bank by assets which reported a net income of 900 billion Rupiah last year.
Standard Chartered said last week its Permata investment is no longer considered part of its core business, meaning it may dispose of the stake. It also named Indonesia among four countries where the bank is focused on reducing costs and engineering a long-awaited turnaround.
