OCBC, DBS vying for Indonesia's Bank Permata

Bank Permata’s owners are seeking a valuation 1.6x of its book value.

Reuters reports that OCBC Group Holdings, DBS Holdings, and Japanese banking giant Sumitomo Mitsui Financial Group are vying to buy Indonesia’s PT Bank Permata, according to sources familiar with the matter.

They said Bank Permata’s owners were seeking a valuation in excess of the 1.6 times book value it currently commands.

Standard Chartered (StanChart) and Indonesian conglomerate PT Astra International each own a 45% stake in Permata, whose shares have nearly doubled this year to value it at about $3.67b (US$2.7b).

Takeover interest in Permata gained ground this year after StanChart said in February that its investment in the bank was no longer core, implying that it was open to selling its stake.

Established in 1955, Permata operates about 320 branches in Southeast Asia’s biggest economy and is a medium-sized bank among Indonesia’s 100-plus lenders.

Here’s more from Reuters.