While CBA has been involved in the growth of PTBC since 1997, the sale of its stake is in line with the bank’s strategy to focus on its banking business in Australia and New Zealand moving forward, says CBA in an announcement on the Australian Exchange (ASX).
The Indonesian subsidiary of Oversea-Chinese Banking Corporation, PT Bank OCBC NISP Tbk (OCBC Indonesia), has agreed to buy Commonwealth Bank of Australia’s (CBA) stake in CBA’s 99%-owned Indonesian banking subsidiary, PT Bank Commonwealth (PTBC). OCBC Indonesia and CBA had entered into a share sale and purchase agreement (SPA) on Nov 16.
OCBC Indonesia will pay an upfront cash consideration of approximately A$220 million or IDR2.2 trillion (approximately $191 million). The consideration will be fully funded through OCBC Indonesia's internal cash as it has "sufficient resources". The bank is also looking to acquire the remaining 1% of PTBC's shares from the rest of its shareholders.
