IFA Approves BBL’s Acquisition on “Permata” to Have Reasonable Transaction and Prices
IFA Approves BBL’s Acquisition on “Permata”, Seeing Beneficial and Competitiveness Enhancement from the Deal.
IFA Approves BBL’s Acquisition on “Permata”, Seeing Beneficial and Competitiveness Enhancement from the Deal.
12 ก.พ. 2563

Bangkok Bank Public Company Limited (BBL) has announced the opinion of the Independent Financial Advisor (IFA) on the acquisition of PT Bank Permata Tbk (Permata) as follows;
 
The acquisition of shares is reasonable as it is congruent with BBL’s business plan and it allows BBL to acquire a commercial bank with potential to grow loans, revenues, and profits and to enter a high potential growth market with well-equipped network and branches. Subsequent to the acquisition of Permata, BBL will be able to enhance its competitiveness as a leading ASEAN bank and diversify its business mix. Moreover, BBL will benefit from significant synergies that further improve BBL’s profitability and long-term return to the shareholders. Therefore, the IFA is of the opinion that entering into the Transaction is reasonable.
 
Under the assumption that the Transaction date was 30 September 2019, the acquisition price of entire shares of Permata is estimated to be IDR 42,001,105.48 million (including net acquisition fee). The acquisition price is in the range of appropriate fair value of Permata’s shares determined by IFA under P/BV, Precedent Transaction Comparable and DDM Approaches of IDR 35,831,430.24 – 116,511,471.84 million.
Therefore, the acquisition price of Permata’s shares is deemed to be fair and appropriate. Therefore, the IFA has opinion that the value which BBL is expecting to enter into the Transaction of IDR 37,430,998.74 million to hold 89.12% of Permata and IDR 42,001,105.48 million to hold 100% is appropriate due to the value being in the appropriate price range, calculated by the IFA.
 
Key terms and conditions of the Transaction are of normal business practice for a share sale and purchase transaction and do not impose undue conditions on BBL. Such terms and conditions allow the Transaction to be executed properly as planned between the parties.
 
Therefore, IFA recommends the shareholders to approve the Transaction.