KB Kookmin Bank will carry out an additional stake acquisition (acquisition of the largest shareholder position with up to 67 percent stake) of Indonesia's mid-sized bank, Bank Bukopin.
The acquisition is expected to secure a stable stake of more than two-thirds without paying a premium on management rights under the active cooperation of Indonesian government agencies, including local financial authorities (OJK), the bank said on July 20.
Indonesia has a very high barrier to foreign capital's entry into the banking industry, and the limit on foreigners' holdings in local banks is 40 percent.
A bank official said, "In case of a stake acquisition, Kookmin Bank will be able to hold up to 67 percent of Bank Bukopin at the end of August by simplifying the management approval process without taking over additional insolvent banks with the cooperation of OJK. This additional acquisition is significant as the first case of taking over the management rights of a bank listed overseas that is substantially larger than a certain size."
Bank Bukopin is a medium-sized bank with a wide range of sales networks covering all of Indonesia, including 412 branches and 835 ATMs.
It also has abundant potential, with its stable market position as the only government-owned bank among the BUKU3 banks.
If the deal is successfully completed in the future, it is expected to pave the way for KB Insurance, Card, Capital to become a comprehensive financial group in Indonesia.
