Kasikornbank bank buys 67% of Indonesian bank, Bank Maspion

One of Thailand’s premier banks, Kasikornbank, has purchased majority shareholding in Indonesian bank, Bank Maspion, for US$220 million. The agreement should be completed by the end of the year, with Kbank owning 67.5% of Maspion shares. Two years ago, rival competitor Bangkok Bank splashed almost US$2.3 billion baht in an Indonesian bank, Bank Permata.

Following a plan to spend US$20 million on Bank Maspion in 2017, the current arrangement will allow Kbank to develop a stronger presence in Indonesia. Kbank launched its first facility in Vietnam in 2021 and is expanding into Myanmar after purchasing a 35% share in Ayeyarwaddy Farmers Development Bank in 2020.

Following the announcement, Bank Maspion Indonesia’s stock jumped more than 10% this morning. Indonesia is the largest economy in Southeast Asia, and is a key target of investors. With the domestic economy stalling due to low interest rates and high debt, Thailand seeks investment elsewhere.

SOURCE: Bangkok Post