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.
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...
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