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BBCA will acquire Rabobank and merge it with its subsidiary

09 June 2020 10:11

JAKARTA. PT Bank Central Asia Tbk (BBCA), plans to acquire PT Rabobank International Indonesia and merge it with its subsidiary.

BBCA estimates that the acquisition may cost Rp 500 billion. However, the final figure will be decided based on Rabobank's equity value at the time of the acquisition, plus a fixed premium of US$ 20.5 million.

In its official statement, BBCA management said that the company would purchase 3.72 million shares, equivalent to 99.99% of Rabobank's shares. The remaining 0.01% will be purchased by PT BCA Finance. Management claimed that the acquisition will be done using the company's internal capital. "[Funding] from funds kept as retained earnings," explained BBCA management.

To continue the acquisition, BBCA and Rabobank will request approval from BBCA's Extraordinary General Meeting of Shareholders, which will be held on 30 July 2020. Then the signing of the deed is expected to be done on 10 September 2020, or after obtaining approval from the Financial Services Authority (OJK)

For information, Rabobank is now controlled by Cooperative Rabobank U.A. with a stake of 81.65%. Meanwhile, BBCA is controlled by PT Dwimuria Investama Andalan, a company owned by Robert Budi Hartono and Bambang Hartono, with a stake of 54.94%. (KR/AR)

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