Amid a flux of acquisitions by foreign banks of Indonesian lenders, private lender Bank Central Asia (BCA) has bucked the trend by acquiring the local arm of Dutch lender Rabobank, the agriculture-focused Rabobank Indonesia.
BCA corporate secretary Raymon Yonarto said in an information disclosure statement to the Indonesia Stock Exchange (IDX) that the lender’s multifinance subsidiary, BCA Finance, had agreed on Wednesday to buy all of Rabobank International Indonesia’s 3.72 million shares from its shareholders: Coöperatieve Rabobank UA, PT Aditirta Suryasentosa, PT Antarindo Optima, PT Antariksabuana Citranagara and PT Mitra Usaha Kencana Sejati.
He said the lender projected the transaction to reach Rp 397 billion (US$28.4 million). The amount will be adjusted based on Rabobank Indonesia’s earnings and losses on the designated transaction closing date, he added.
The lender, however, did not provide the timeline of the transaction in the statement.
Raymon said the acquisition would support Indonesia’s banking architecture. “It is also meant to support our subsidiaries’ existing businesses,” he said.
The lender will also study the possibility of merging Rabobank with one of BCA subsidiaries in the future, according to the statement.
This will be the second acquisition by BCA as earlier this year, the country’s biggest bank by market capitalization acquired all of BUKU I category bank, Bank Royal, for Rp 1.01 trillion to expand its business and focus on a certain segment of customers.
Earlier this year, Rabobank Indonesia announced that it would stop operations in June 2020. President director Jos Luhukay said the decision was made in line with the global business strategy of the Rabobank Group that would focus on the supply chain of food and agriculture products.