UK-based HSBC has opted out of the race to buy Temasek Holdings's 42% stake in Bank Internasional Indonesia, while South Korea-based investment banking group Kookmin will continue to bid for the shares, reported Reuters.
Media reports have quoted a source close to the deal as saying that Temasek will very soon decide on the buyer of the stake. Temasek has a stake in two Indonesian banks, Bank Internasional Indonesia (BII) and Bank Danamon.
According to the new regulations set by the Indonesian central bank, a foreign investor cannot hold a stake in more than one bank and hence Temasek is planning to sell its 42% stake in Bank Internasional Indonesia.
The other bidders along with Kookmin for BII are Bank of China and Malayan Banking.