Since liabilities exceed assets, the net asset value (NAV) is negative. OCBC will pay a premium of approximately $480 million, subject to the adjustment mechanisms in the agreement. The purchase consideration will be finalised after completion.
On May 4, OCBC announced that its Indonesia subsidiary, Bank OCBC NISP (OCBC Indonesia), has entered into an agreement with 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 assets under management (AUM) to be transferred are $6.6 billion, comprising $4.3 billion in customers’ investments in mutual funds, bonds and insurance, plus $2.3 billion in customer deposits. The $300 million loan book will also be transferred.
