Bank Commonwealth Introduces OCBC as New Owner

By Editorial Team 17/11/2023
More capital for banks
Summary

The Commonwealth Bank of Australia (CBA) has agreed to sell 99 percent of PT Bank Commonwealth's (PTBC) shares to PT Bank OCBC Indonesia Tbk (NISP). The upfront payment for selling PTBC shares to OCBC amounts to Rp 2.22 trillion (US$141.5 million).

CBA's management stated that selling PTBC shares is a strategic move to focus on banking businesses in Australia and New Zealand. "CBA hopes to collaborate with OCBC Indonesia in the coming months during the ownership transition process," as per the statement released by CBA's management on Thursday.

Upon completion, this transaction is expected to have a neutral impact on CBA Group's core capital and equity ratio. CBA stated that the finalization of this acquisition will be subject to several requirements from the Financial Services Authority (OJK) and the Monetary Authority of Singapore, given that OCBC Indonesia is a subsidiary of Oversea-Chinese Banking Corporation Limited (OCBC) Singapore. "The transaction completion is estimated to occur in the second or third quarter of 2024," CBA's management stated.

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