Since the liabilities are more than the assets, the net asset value (NAV) is likely to be a negative number. OCBC will pay a premium of around $480 million, which is subject to the adjustment mechanisms in the agreement. The purchase consideration will be finalised after completion.
Oversea-Chinese Banking Corporation (OCBC) has announced that its Indonesia subsidiary, PT Bank OCBC NISP Tbk (OCBC Indonesia), has on May 4 entered into an agreement with PT Bank HSBC Indonesia (HSBC Indonesia) to acquire the assets and liabilities of its retail banking and wealth management operations in Indonesia – International Wealth and Premier Banking (IWPB Indonesia).
The transaction involves the transfer of IWPB Indonesia’s assets and liabilities to OCBC Indonesia. The total AUM to be transferred is $6.6 billion, comprising $4.3 billion in customers’ investments in mutual funds and bonds as well as insurances, and customer deposits of $2.3 billion. The loan book of $0.3 billion will also be transferred.
